Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Customized marketing strategy and realistic sales plans. “If Five-year financial projections of revenue and expenses.

Product 145

Product Intellectual Property Liquidity Event Valuation 145

Berkonomics

SEPTEMBER 13, 2018

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. The price negotiated is not at all the critical factor in the emotional sale. And the emotional buyer.

Intellectual Property 240

Intellectual Property Investment Bankers Acquisition Forecast 240

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. What are revenue strategy and pricing tactics? In a perfect world, you would never need investors and would fund the company from customer revenue. How much do they need to own at a liquidity event? What problems do they want solved?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

Startup Professionals Musings

AUGUST 13, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For those of you who fit that description, nice work. There is a lot to say about retaining control.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Professionals Musings

MAY 13, 2011

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Specific elements of your marketing and sales plans. If we build it they will come” is not a marketing and sales strategy. Projected revenues and expenses over the strategic period.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

FEBRUARY 13, 2016

What are your specific marketing and sales plans? You need to identify pricing details, sales channels, strategic partners and a customized marketing plan consistent with your industry and target segment. What are your forecasts for revenue, expenses and cash flow? Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Steve Blank

JULY 15, 2010

Until 1995 startups going public typically had a track record of revenue and profits. Suddenly there was a public market for companies with limited revenue and no profit. Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. Source: NVCA.).

Venture Capital 306

Venture Capital IPO Liquidity Event Entrepreneur 306

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Both Sides of the Table

MARCH 3, 2013

The numerator (return) encourages more sales, which is fine. VC can’t don’t invest in these kinds of companies because they can’t get out (no liquidity event). ” No royalty paid until there is revenue. He spoke about ROCE (return on capital employed). Then there is a royalty rate.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Berkonomics

AUGUST 20, 2015

The inciting incident in a movie is the event at the beginning of the story that causes the hero’s life to be completely transformed and irrevocably changed, and makes the whole story unfold. I thought of this in a recent liquidity event in one of my portfolio companies. But, they were clearly mouthwatering.

Liquidity Event 48

Liquidity Event Private Equity Valuation Equity 48

Berkonomics

SEPTEMBER 24, 2015

Perhaps you have decided to continue growing top line revenues at the expense of cash flow (EBITDA.) For high growth ventures being groomed for a lucrative liquidity event, this is usually a wise choice, presuming additional growth capital can be successfully raised on agreeable terms.

Liquidity Event 48

Liquidity Event Ohio Acquisition Revenue 48

Startup Professionals Musings

APRIL 22, 2010

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it requires at least 100M users and $50M investment. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

NOVEMBER 4, 2011

Although Intermix was doing well during that period, bringing in around $75 million annual revenue, all of the explosive traffic growth was occurring at one property, MySpace – the jewel for which FIM ended up acquiring the whole Intermix crown. of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. There is a lot to say about retaining control.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

SEPTEMBER 8, 2022

Some potential buyers or strategic partners might want your intellectual property, or revenues, or profitability, geographic advantage, or sale force, or your employee base. “What would the candidate want from your company in a transaction?” Think carefully. We’ll come back to this column in a moment.

Partner 62

Partner Intellectual Property .Net Distribution 62

Growthink Blog

MAY 26, 2011

Last week, TruckCenter.com was purchased by Liquidity Services (NASDAQ: LQDT), a company that runs online auctions for surplus goods. I found this pretty amusing since when a company is purchased, we often say it reached a "liquidity event." your business) into cash.

Acquisition 81

Acquisition Liquidity Event Valuation Revenue 81

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. In the old model of Israeli startups, many Israeli executive teams would hire a vice president of sales in the U.S. to assist with the local go-to-market approach.

Israel 20

Israel Cofounder Technical Review United States 20

Berkonomics

DECEMBER 17, 2020

There is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures. For early stage investors, the usual expectation is seven years from investment to expected liquidity. Individual super angel investors. And the one thing in common?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Growthink Blog

MAY 13, 2012

But, when one of these factors are "out of whack," it can be a much tougher sale to make. And they'll want to invest if they believe your company has great potential to achieve a liquidity event, and one that enables them to earn a significant return on their investment. Getting funding from angel investors is the same way.

Angel Investor 93

Angel Investor Exit Strategy Liquidity Event Angel Groups 93

Gust

SEPTEMBER 5, 2012

Turn the question on its head: How could it make sense to lend money to a brand new, seed-stage company with no revenue, no products, and no collateral? (You In that sense it’s more like a warrant or option with a zero exercise price.). How can this possibly make sense? You won’t see banks doing that.)

Finance 134

Finance Convertible Security Equity Seed Stage 134

The Next Web

SEPTEMBER 29, 2013

You’re basically tinkering with everything at this stage – product, marketing, sales, partnerships, etc. You’re tinkering with your marketing and sales channels. Investors are always thinking about growth mode because that’s the path to where they want to go – liquidity event. How do you do that?

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Berkonomics

SEPTEMBER 6, 2018

New products, new geographic territories, elimination of a competitor, increase in revenues, consolidation savings, new talent, new distribution channels, and more are good reasons for a start. We assume that you intend to sell the enterprise at some point in the future. Odds that an acquisition will be a success.

Acquisition 48

Acquisition Distribution Channel Operations 48

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. The price negotiated is not at all the critical factor in the emotional sale.

Intellectual Property 88

Intellectual Property Investment Bankers Acquisition Forecast 88

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Of course, for that to be true, you need to reach a liquidity event (IPO or M&A) at or above the last round valuation with no incremental dilution from new rounds.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. There is a lot to say about retaining control.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. Creating brand is or should be a major focus for companies in industries where positive and immediate customer prospect recognition results in sales.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Berkonomics

AUGUST 27, 2011

We must assume that you intend to sell the enterprise at some point in the future. There are many reasons a company finds to make an acquisition.

Acquisition 73

Acquisition Distribution Channel Revenue 73

Berkonomics

APRIL 3, 2014

Second, there is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures. For early stage investors, the usual expectation is seven years from investment to expected liquidity.

Equity 92

Equity Finance Liquidity Event Angel Groups 92

www.quora.com

JANUARY 16, 2011

What did you take from idea on the back of a napkin to liquidity event? Today's "Minimum Viable Product" *must* have scalability / capacity planning and security baked in, *not* postponed until revenue starts to come in. When I say viable, I mean something that can generate sales. Now we turn it around.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42