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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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Going Concern Rules And Your Company

YoungUpstarts

Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. Obtaining term sheets, note agreements, or even emails from lead investors stating their intentions to continue funding the entity may help support management’s assertion that they can raise more capital.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

This also appears as a guest post at Fortune’s Term Sheet. In another we decended into a debate about our 5 year forecasts (I built the models so fielded most of these questions), and it became clear they probably weren’t the best fit for our Series A round (this group is no longer in the early-stage VC business).

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Looking for investors? Here’s how to value your startup

The Next Web

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry.

Valuation 167
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How To Keep Your Company Alive – Observe, Orient, Decide and Act

Steve Blank

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Forecasted recovery date. If you were raising money, validate whether your investors are still on board – with the same terms – or at all. Sales pipeline/forecast. How many months of cash do you have?

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Top 10 questions on pitching an idea to investors

Up and Running

Q: When and how should you discuss investor incentives (perks, % of revenue, etc)? Most sophisticated investors will already have terms they typically prefer in a deal, but they should be open to discussion. Most sophisticated investors will already have terms they typically prefer in a deal, but they should be open to discussion.