Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

thebarefootvc

JANUARY 27, 2014

The influx of capital contributing to these valuations is happening at the lower risk, pre-IPO stage—once a company has scaled to prove out its business model with significant revenue and/or market share. Further, while the public markets are opening up to IPOs once again, companies take much longer to IPO than in previous cycles.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Both Sides of the Table

FEBRUARY 3, 2011

What is the mix of revenue between ads, subscriptions, digital downloads & ecommerce. My favorite quote of the show, “Gregg, what’s the mix of revenue types?&# JibJab doesn’t do ad revenue at all. Gregg is an ex Investment Banker and Wharton MBA. How did you go viral initially?

Viral 303

Viral Investment Bankers Video Business Model 303

Steve Blank

JUNE 17, 2011

They helped build these struggling ventures into the Facebooks’, Twitters’, and Zyngas’ before anyone else appreciated these companies could have hundreds of millions of users with off-the-chart revenue and profits. Really smart money recognizes it’s a bubble and bets against it.) They know others will. They profit from the boom times.

Investment Bankers 318

Investment Bankers Stock Valuation Venture Capital 318

Startup Professionals Musings

FEBRUARY 5, 2012

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Startup Professionals Musings

OCTOBER 13, 2010

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Both Sides of the Table

SEPTEMBER 12, 2010

They must be trying to cull through large databases of mid-sized traditional businesses and trying to find deals before they’re spotted by investment bankers and flogged to everybody at once. If the goal is simply to get the basic details (revenue, customers, staff numbers, prior funding) then no judgment is required.

Programming 294

Programming Entrepreneur Private Equity Equity 294

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

David Teten

DECEMBER 3, 2019

Derek Manuge, CEO, says that “Corl evaluates startups by assessing the risk-adjusted return of an investment based on over 500 metrics across financial (300+), banking (75+), payment (75+), marketing (25+), and team information (25+). Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. 10) Report.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Duct Tape Marketing

NOVEMBER 3, 2022

Carolyn Rodz (03:04): So I started out actually my career as an investment banker and jumped into entrepreneurship quite blindly. It's a three day accelerator that brings owners through how do you grow revenues. And it's similar sort of metaphor, you know, like what it's like to be, you know, to start a business.

Entrepreneur 95

Entrepreneur Technical Review Networking Community 95

Duct Tape Marketing

FEBRUARY 3, 2022

So yeah, I just recognized, gosh, there's this huge gap above a business broker below an investment banker. Some of those other factors could include the type of revenue that you have or you project based, or your clients paying you on a re current retainer, the size of your clients. That's just living in, uh, no man's land.

Entrepreneur 94

Entrepreneur Technical Review Cofounder Valuation 94

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

David Teten

NOVEMBER 17, 2011

While working on my most recent startup, Navon Partners , we were fortunate to have Raul Trevino , a star former Citi investment banker and Columbia MBA, interning with us. Like me, he had the pleasure/pain of being trained as an investment banking analyst.

Employee 155

Employee IRR Startup Mexico 155

Feld Thoughts

SEPTEMBER 20, 2013

If the SEC didn’t agree with your auditors on revenue recognition, you’d end up in a crazy escalating set of discussions. If you didn’t time it right, you’d have to do new financial disclosure. If the SEC was slow because they had a backlog, it would take longer.

SEC 143

SEC IPO Investment Bankers Valuation 143

Up and Running

MAY 28, 2014

Contact an investment banker, and ask how similar companies are being evaluated and acquired. Are they being valued on revenue, content, profitability or traffic? Look at financial analysts’ reports on publicly-held companies as they’re valued on future profitability or revenues. Look at Similar Companies.

Metrics 109

Metrics Investment Bankers Early Stage Revenue 109

Reid Hoffman

MARCH 23, 2021

Or, you might proactively change your business in a way that requires you to rebuild your dashboard to account for an additional revenue stream. The problem was that Groupon’s revenue growth was a false positive. The market can change in a way that renders your previous heuristics false.

Venture Capital 50

Venture Capital Metrics Investment Bankers Framework 50

YoungUpstarts

FEBRUARY 17, 2020

There’s the example of one of my clients, a highly successful investment banker, who told me that nearly one-quarter of all his lifetime revenue had come through one law firm partner he had developed a close relationship with early in his career. Follow the relationship recipe.

Artificial Inteligence 182

Artificial Inteligence Investment Bankers United States Vesting 182

Growthink Blog

SEPTEMBER 30, 2012

When seeking such a buyer, your best bet is to use the services of a qualified investment banker. While the banker will charge you fixed cash and success fees (a percentage of the amount for which your company is sold), most are well worth the cost. the timing of your payout, etc.). the timing of your payout, etc.).

Investment Bankers 107

Investment Bankers Search Sales Advertising 107

BeyondVC

OCTOBER 25, 2003

According to many investment bankers I have met with, today’s companies, unlike yesterday’s, need to have $10-20mm of revenue a quarter, be profitable now and not in 8 quarters, come from an established and not an emerging sector, and have a valuation based on real earnings and growth and not one on revenue.

IPO 78

IPO Investment Bankers Venture Capital Valuation 78

The Equity Kicker

JULY 26, 2012

The business is still growing – revenues were up 19% to $332m for the quarter – but losses widened and the company slashed its growth targets. This is a similar story to GroupOn (share price off 74% since it’s November 2011 IPO) and even Facebook (share price off 26% since its May IPO).

Investment Bankers 96

Investment Bankers IPO Marketing Valuation 96

Up and Running

JUNE 21, 2011

Create relationships with an experienced accounting firm, lawyer and investment banker or business broker today. If you have > $5 million in revenue, get the last two years of your financial statements audited. Strong service providers can add substantial value to a sale process- in fact, they should pay for themselves.

Sales 86

Sales Investment Bankers CPA Stock Options 86

Berkonomics

SEPTEMBER 2, 2011

Most investment bankers will coach you into helping them find you a strategic buyer, knowing that such sales are quicker, often less focused upon the small warts of a business, and yield higher prices than financial sales.

Intellectual Property 88

Intellectual Property Investment Bankers Acquisition Forecast 88

BeyondVC

NOVEMBER 17, 2006

From April 2001 through June 30, 2006, we achieved 21 consecutive quarters of revenue growth. In fact, during the last 3 fiscal years for the company, it did $6.4mm, $10mm, and then $15mm in revenue. The trailing twelve month number is closer to $20mm in revenue. million, $0.9 million and $1.8 million, respectively, and used $0.7

IPO 78

IPO Investment Bankers Demand Revenue 78

YoungUpstarts

JANUARY 21, 2014

There’s the story of an investment banker who arrives at his client’s office in the middle of a large deal. But they won’t cut an investment that’s proven to help grow revenues or increase profits. And you should be such an investment.

Investment Bankers 145

Investment Bankers Social Media Networking Lean 145

BeyondVC

OCTOBER 25, 2003

According to many investment bankers I have met with, today’s companies, unlike yesterday’s, need to have $10-20mm of revenue a quarter, be profitable now and not in 8 quarters, come from an established and not an emerging sector, and have a valuation based on real earnings and growth and not one on revenue.

IPO 60

IPO Investment Bankers Venture Capital Valuation 60

The Equity Kicker

MARCH 7, 2016

This sort of tallies with my experience and what I’ve heard lots of investment bankers say over the years, which is that companies get acquired for up to around $100m without having to show that they are sustainable in the long term. Moreover, much is driven by luck in this industry and individual counter-examples abound.

Acquisition 60

Acquisition Intellectual Property Investment Bankers Valuation 60

Tim Keane

SEPTEMBER 18, 2006

But.for a company with investors who expect a "harvest," just as things get good on the revenue side, the strategic plan for the companys future becomes very important. Have they done a lot/a few/ no transactions with Investment Bankers? What can we do to their revenue? What can we do to their revenue?

Harvest 60

Harvest LBO Investment Bankers Wisconsin 60

BeyondVC

NOVEMBER 17, 2006

From April 2001 through June 30, 2006, we achieved 21 consecutive quarters of revenue growth. In fact, during the last 3 fiscal years for the company, it did $6.4mm, $10mm, and then $15mm in revenue. The trailing twelve month number is closer to $20mm in revenue. million, $0.9 million and $1.8 million, respectively, and used $0.7

IPO 60

IPO Investment Bankers Demand Revenue 60

Growthink Blog

MAY 21, 2014

Investment companies in the Berkshire mold have great flexibility to structure investments of various types: traditional straight cash-for-equity, warrants, contingent warrants, revenue certificates, convertibles, in exchange for professional services, on project-by project bases, and more.

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Berkonomics

DECEMBER 20, 2018

So here goes: How would I find companies willing to license my intellectual property or to invest in a royalty stream from licenses? Investment banker? The royalty investor providing capital is a third party who makes a financial transaction with you, investing in you to receive a portion of the royalties from your IP.

IP 54

IP Intellectual Property Product Investment Bankers 54

readwrite.com

NOVEMBER 27, 2012

Levie won’t disclose revenue figures, but allows that Box has 650 employees, roughly double the level from a year ago. He says revenue growth is tracking with head-count growth, meaning sales are up roughly 100% year over year. Yes, suddenly the enterprise is cool again. The Next Market Will Be Bigger.

Silicon Valley 64

Silicon Valley Architecture San Francisco Cloud 64

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? Since then, I’ve talked with a number of other firms, and greatly expanded my database: Who are the major Revenue-Based (RBI) Investing VCs? Revenue-based investing VC. Venture debt.

SBIC 60

SBIC SBA Cap Table Database 60

Berkonomics

DECEMBER 20, 2018

So here goes: How would I find companies willing to license my intellectual property or to invest in a royalty stream from licenses? Investment banker? The royalty investor providing capital is a third party who makes a financial transaction with you, investing in you to receive a portion of the royalties from your IP.

IP 48

IP Intellectual Property Product Investment Bankers 48

Seeing Both Sides

SEPTEMBER 15, 2015

To answer these questions, we built a database of 112 Israeli companies founded between 1996 and 2013 that have met or exceeded $20 million in revenue. know how the entrepreneurial game is played, know the relevant growth-stage investors and investment bankers, and are adept at navigating exits at different stages.

Israel 20

Israel Cofounder Technical Review United States 20

Mike Michalowicz

JANUARY 8, 2015

Other purchases are simply to generate revenue – allowing the buyer to streamline processes and cut costs by consolidating. Get an investment banker or a business broker to handle the sale with you. Find out what your buyer wants. Know that it’s a long process. My first sale – the most profitable one – took two months.

Intellectual Property 60

Intellectual Property Investment Bankers Exit Strategy Sales 60