Startup Professionals Musings

JUNE 13, 2020

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Startup Professionals Musings

AUGUST 2, 2014

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Steve Blank

JUNE 11, 2013

———– One of my ex students came out to the ranch to give me an update on his startup. It all starts with understanding what a startup is. What’s a Startup? Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model. Why small amounts?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

David Teten

NOVEMBER 17, 2011

This is the third of three blog posts on financial modeling for startups. The first was on best practices in building financial models , and the second was a template financial model for a startup. Download the Startup Options Valuation model here. Valuing startups is a far fuzzier process. Participa.me

Employee 155

Employee IRR Startup Mexico 155

SoCal CTO

MAY 19, 2010

I’m planning on going to a Tech Coast Angels mixer tomorrow and the topic for me is whether there is angel funding out there for startups that don’t meet classic VC models. Remember my day job, I'm past Chairman of the Tech Coast Angels and I see a lot of pitches with revenue forecasts. But, this is not my experience with Angel groups.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. as measured by MOIC, TVPI and IRR and by sources that don’t reveal the underlying data and who themselves have to rely on incomplete datasets.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Steve Blank

JUNE 23, 2016

Disruptive innovations are coming from startups – Telsa for automobiles, Uber for taxis, Airbnb for hotel rentals, Netflix for video rentals and Facebook for media. As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Feld Thoughts

JULY 31, 2013

I’m intensely proud of both the amazing startup community in Boulder as well as the many significant companies that have been – and are being – created in the little town of 100,000 people I call home. Our equity IRR has averaged around 50% since inception. It’s great – and follows. We raised $2.7B

Bandwidth 149

Bandwidth Colorado Startup IRR 149

Both Sides of the Table

OCTOBER 17, 2019

I had just left Salesforce.com where I was VP, Products, after they had acquired my second startup. Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. Over the past 2.5

IP 223

IP Intellectual Property IRR Cofounder 223

Startup Professionals Musings

JUNE 5, 2016

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. More importantly, the focus on numbers tends to hide other more subjective issues that could be more important for any given startup. How big is your startup opportunity?

Angel Investor 120

Angel Investor IRR Valuation Startup 120

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

crowdSPRING Blog

AUGUST 7, 2011

In addition, as long as investors can earn higher returns on T-notes, they will expect higher returns from alternative investments in equities and VC’s may follow suit for similar reasons and expect a higher IRR from their invest,ends in new ventures. Three economic trends for 2011 (fueled by startup goodness).

Small Business 86

Small Business IRR Government United States 86

Hunter Walker

FEBRUARY 25, 2018

For Homebrew , we’ve optimized for a product offering that will appeal to our target customers (founders) and maximize spending our time being hands-on supporting startups. Our J Curve and early IRR may look worse than other funds. Actually not much. Of course we think this’ll be to our advantage but….

Product 99

Product IRR LP Seed Stage 99

Growthink Blog

MAY 21, 2014

One reader reference Gust Founder David Rose’s new book - “ Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups ” and to Rose’s main contention that to access the 25% IRR potential of the asset class one must hold positions in not less than 20 companies. He asked, “ Is this practical advice?

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

K9 Ventures

NOVEMBER 30, 2008

Therefore, the motivation is really to look for startups that have an appetite for a larger, chunkier investment. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%. The industry average for the number of investments per partner is between 1-2 deals per year.

IRR 48

IRR Venture Capital LP Early Stage 48

Steve Blank

MARCH 4, 2014

In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. But paradoxically, in spite of all their seemingly endless resources, innovation inside of an existing company is much harder than inside a startup.

IRR 335

IRR Startup Business Model Agile 335

abovethecrowd.com

APRIL 20, 2016

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” Next came Rolfe Winkler’s deep dive “ Highly Valued Startup Zenefits Runs Into Turbulence. ”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Hippoland

NOVEMBER 13, 2016

It takes a long time to see the results of a startup that does well. But what if a company is growing revenues but hasn’t raised a round in a while? At that time, they had no revenue and now they are doing $500k revenue runrate. Last traction: None have revenue. Last traction: None have revenue.

IRR 48

IRR Valuation Portfolio Due Diligence 48

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” Multiples are not only used to value companies today but also to value companies several years down the line.

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

David Teten

NOVEMBER 23, 2020

I’m also incubating a startup, Action Tank , to help other NGOs accomplish their goals using their supporters’ unique expertise. In an article you wrote for Techcrunch in 2019 about Revenue Based Investing you mentioned that “ traditional equity VC is biased structurally against some women and underrepresented founders”. Firm revenues.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60