Startup Professionals Musings

MARCH 9, 2018

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

SEPTEMBER 7, 2011

This will include the first version of many critical processes that can be split out later, including market opportunity, requirements, product definition, business model, sales process, and organization. Product development process. Billing and revenue collection. Funding process. It all has to be written down and maintained.

Startup 255

Startup Institutional Investors Angel Investor Bootstrapping 255

David Teten

SEPTEMBER 5, 2014

I’ve written on the expert network industry a fair amount in the past: see How to Earn More Consulting Revenue from Expert Networks and How Executives Can Work with Private Equity and Venture Capital Portfolio Companies. GLG Share is really a membership more than a product, and we want to serve our members however we can. Who are they?

New York 114

New York Technical Review Networking Advisory Board 114

Berkonomics

AUGUST 3, 2023

Certainly, bootstrapping is a preferred method of funding growth if it does not hold back the speed of growth or hobble the quality of product or service to the extent that better-funded competitors can overtake the business. Several are well-known and professional investors pay special attention to their graduates.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Steve Blank

JUNE 15, 2011

Long before others, they saw that these applications could have hundreds of millions of users with “off the chart&# revenue and profits. The awareness phase is where other later-stage investors start to notice the momentum, bringing additional money in and pushing prices higher. The higher the price, the more investments pour in.

Silicon Valley 332

Silicon Valley Stealth Valuation Mississippi 332

Up and Running

SEPTEMBER 26, 2016

Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor. Venture debt is a no-brainer if you have liquidity or backing from an institutional investor. The downsides of venture debt?

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Rob Go

SEPTEMBER 4, 2018

Of the last 15 investments we’ve made, 8 have been pre-product or pre-seed style rounds. In two cases, these businesses were doing significant early revenue ($500K/month+), so could be considered “post-seed”, although both of these companies had not raised significant institutional capital before we led their rounds.

North America 36

North America Seed Stage Early Stage Lead Investor 36

Startup Professionals Musings

AUGUST 1, 2010

This will include the first version of many critical processes that can be split out later, including market opportunity, requirements, product definition, business model, sales process, and organization. Product development process. Billing and revenue collection. Funding process. It all has to be written down and maintained.

Startup 239

Startup Institutional Investors Angel Investor Bootstrapping 239

Startup Professionals Musings

NOVEMBER 11, 2015

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

David Teten

SEPTEMBER 23, 2017

Early stage investors are also mining product crowdfunding sites ( Indiegogo *); lists of product launches ( Producthunt ); angel group platforms ( Gust , Proseeder ); and equity crowdfunding sites ( AngelList , CircleUp , FundersClub , OurCrowd , SeedInvest ) for leads.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

View from Seed

MARCH 26, 2015

Much digital ink has been spilled about what dollar amount constitutes a pre-seed and how that might affect a startup’s ability to go raise a “normal” seed round from institutional investors. ” Those trends increased the typical “institutional seed” round sizes from the previous levels I mentioned to $1.5M-$2M or even more.

Seed Capital 120

Seed Capital Institutional Investors Venture Capital Partner 120

Both Sides of the Table

MAY 23, 2012

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. IPO markets had burned an entire cycle of retail stock investors and many institutional investors to boot.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

ithacaVC

JANUARY 14, 2014

And the Series A investors then owned 4/9s of Company X. The Series A round was taken by $2mm of institutional investors and $2mm of angel investors. It has just started to generate revenue. It expects revenue of $1.7 For example, in this hypo, Company X expects to do $1.7mm of revenue in the coming year.

Pre-Money Valuation 58

Pre-Money Valuation Post-Money Valuation Valuation Term Sheet 58

Berkonomics

JUNE 8, 2017

Certainly, bootstrapping is a preferred method of funding growth if it does not hold back the speed of growth or hobble the quality of product or service to the extent that better-funded competitors can overtake the business. Several are well-known and professional investors pay special attention to their graduates.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

VC Cafe

APRIL 8, 2010

The acquisition is a bitter-sweet end to the story of Veoh, which has raised $70 million since getting funded in 2005 from institutional investors (Goldman Sachs, Intel Capital, Shelter Capital and Spark Capital among others) and big media companies such as ABC, CBS and Warner Brothers.

Bankruptcy 74

Bankruptcy Early Stage Merger Institutional Investors 74

Growthink Blog

MAY 10, 2012

Put everything else on your "wish list" to buy with revenues from sales or additional financing. That is, you'll use the funding to build a product or service and prove that customers want to buy it. At this point, you will be ready for institutional investors who can provide funding to scale or rapidly grow your business.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

David Teten

DECEMBER 3, 2019

Sabena Quan-Hin, Marketing Manager at Flow Capital , wrote, “There are two crucial aspects of marketing that investors often overlook: automation and analytics. Automation allows you to spend less time on tedious tasks and will help boost productivity, especially within a small marketing team. Deer Isle Group has built the D.I.G.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Rob Go

JANUARY 7, 2013

Actually, growth equity firms I find are best at this, because they have very specific financial criteria that they look for, such as ranges for revenue, ebitda, growth, etc. But we behave pretty much exactly the same way in those companies as we do when we are the lead and only institutional investor. Stage: Pre Product: 12.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Rob Go

JULY 9, 2012

It seems like almost all institutional investors have an ownership target, and many stick to that number pretty religiously. I always encourage even early stage companies to make basic plans, have milestones, have product release targets and revenue or customer usage or engagement targets.

LP 53

LP Institutional Investors Early Stage Venture Capital 53

Ben's Blog

OCTOBER 29, 2020

Have bankers simply become even more evil in 2020, deliberately diverting more money from a company’s coffers to line the pockets of the buy-side institutional investors who subscribe to IPO shares? However, many banks had been bundling research as part of the commissions that institutional investors paid.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

YoungUpstarts

JANUARY 3, 2018

But you’ve got to start somewhere, so start with a look at what went wrong with some of the 2017 activist investor targets. Activist Investor Target: Procter & Gamble. If what made you successful isn’t working anymore, don’t wait for an activist investor to force the shift to a new way of competing.

Agile 113

Agile Malaysia Private Equity Non-Compete 113

ReadWriteStart

JULY 7, 2023

Every year, millions of employees across the United States complete job-related courses in compliance, soft skills, upselling, product training, and more. Revenue and profit are two classic indicators of a successful ROI. revenue increase. How Do You Properly Measure the Value of Corporate Learning in Your Business?

Programming 148

Programming Developer United States Institutional Investors 148

A Smart Bear: Startups and Marketing for Geeks

JULY 24, 2012

Pin It Listen to this episode if you want to learn what a VC investor thinks about “Internet scale” and how you can usually simplify your idea by charging a fair price for your product. We’re building a product. Dan: Actually, the reason I called really wasn’t to discuss what we’re doing.

Silicon Valley 204

Silicon Valley Software Review Internet Technical Review 204

Up and Running

MARCH 21, 2016

Particularly if you are a first-time entrepreneur, it will be much easier to get investments on good terms (particularly from non-institutional investors) if you have some traction first,” he explains. Investors want proof that your idea is going to work, and nothing proves this better than having real, paying customers.

Cofounder 60

Cofounder Metrics Angel Investor Silicon Valley 60

Small Business Force

JUNE 11, 2010

A fundable business plan has, at a minimum, a business that has passed "proof of concept" (defined as cash paying customers successfully buying and using your product for a period of time) and has a scalable business model. Often a relationship can be structured on a revenue share basis that becomes a win-win for both parties.

Entrepreneur 30

Entrepreneur Institutional Investors Angel Investor Business Model 30

Austin Startup

JUNE 4, 2017

Recently I was fortunate enough to have raised a seed funding round from a fantastic group of investors for my pre-product, pre-revenue B2B SaaS startup here in Austin, Texas. If you would like to read more about my company, here is the product launch and funding announcement. Mark Cuban leads $1.5 Remember that.

Austin 54

Austin Institutional Investors Angel Groups Deal Flow 54

grasshopperherder.com

SEPTEMBER 24, 2011

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. Please note: I am not an institutional investor and I am not a consultant although I occasionally dabble/consult in projects I find particularly interesting. The company with all the revenue is Company C. Valuations.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Up and Running

DECEMBER 9, 2014

It started in college when I started my own music marketing and production company. It’s a simple product, maybe many of you are familiar with it already that makes it really easy to basically no longer pay your bills by check. Two, revenue. This is because there are a myriad of loan products out there.

Small Business 95

Small Business Finance Forecast Metrics 95

abovethecrowd.com

JUNE 2, 2021

On March 26, SoFi announced that “it will be offering its members (at least those with $3K in their account) the ability to invest in IPOs for companies going public, an investment opportunity that has traditionally been reserved for large institutional investors or ultra-high-net-worth individuals.” NPS would soar.

IPO 82

IPO Customer Matching Silicon Valley 82