Berkonomics

OCTOBER 3, 2013

The question is whether to start this exhausting process early in the life of a corporation, or rush to complete it when a deal is identified or the run to a sale is imminent. The liquidity event and beyond' But maintaining such an electronic or physical facility is time-consuming and costly.

Software Review 76

Software Review Due Diligence Liquidity Event Intellectual Property 76

Berkonomics

AUGUST 10, 2023

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Resetting your priorities Taking money from these sources involves resetting priorities over time.

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116

Berkonomics

JANUARY 7, 2021

So, co-management is the second group to share in the bounty upon a liquidity event. Those who receive options but leave the company before a liquidity event may either purchase those shares represented by the options upon exit from the company, or lose the right to those shares, often 60 days after their exit.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

Berkonomics

AUGUST 1, 2024

Others aim for financial success during the growth of their business and at the liquidity event or sale of the business – someday. Some work to achieve good deeds and hope that their efforts will result in financial success over time. So, this is important. Is this important?

Liquidity Event 62

Liquidity Event Revenue Email Employee 62

Startup Professionals Musings

MARCH 13, 2020

If you insist on projecting $100 million in sales the first year, smart investors will likely run for the nearest exit. Define an exit strategy for investors to liquidate their share. Assume margins and prices that are realistic in your target market. Back up your projections with a simple financial model.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Hearpreneur

OCTOBER 29, 2017

I loved what I did (sales) but I didn’t love doing it for somebody else. The way I got into that unique position was that my career has been spent in field sales, and so I understood the challenges faced by field sales first hand. Thanks to Jim Tobin, Ignite Social Media ! #2- Photo Credit: Mary Vamvoukakis.

Entrepreneur 90

Entrepreneur Social Media Liquidity Event Private Equity 90

Berkonomics

AUGUST 17, 2023

Preparing for the game… If you have been following our recent insights, you’ll be up to speed knowing that professional investors negotiate tough terms, from provisions of control over asset acquisition, eventual sale of the company, future investments, forced co-sale when others attempt to sell their shares and more.

Liquidity Event 118

Liquidity Event Stock Options Stock Audio 118

Berkonomics

MARCH 9, 2023

If you own a significant piece of the business, is this a time to consider planning an eventual exit or liquidity event? But this question begs for a positive answer. How would you like to see your finish line? Or do you plan to pass control to the next generation if appropriate? But we have saved this question for last.

Liquidity Event 62

Liquidity Event Valuation Email Management 62

Berkonomics

AUGUST 6, 2020

Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale. But most of us dream of selling the business someday for lots of money and building our wealth upon that event. Envision your end game when you start.

Liquidity Event 62

Liquidity Event Intellectual Property IPO Equity 62

Up and Running

SEPTEMBER 19, 2017

By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable. The right-of-first-refusal clause, however, proved a significant impediment in his attempted sale of stock to the industry insiders. Conclusion.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

AUGUST 10, 2019

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Berkonomics

JANUARY 5, 2023

Sales organizations may or may not be combined, but senior sales management is consolidated so that commissioning, territorial management and product management functions all harmonize. Facilities may become redundant or oversized after these efforts, allowing for consolidation of facilities as well. The post Looking to be acquired?

Acquisition 62

Acquisition .Net Retention Sales 62

Gust

DECEMBER 1, 2011

Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth.

IP 114

IP Intellectual Property Equity Liquidity Event 114

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 Discussion of likely liquidity events and exit strategy.

Product 145

Product Intellectual Property Liquidity Event Valuation 145

Startup Professionals Musings

AUGUST 29, 2018

Payoff after a liquidity event is difficult and unpredictable. Professional investors like to keep tight control of capitalization tables and all stock owners, to facilitate their own payoff when a sale, merger, or public stock offering is held.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 335

Venture Capital IRR Liquidity Event Business Model 335

Berkonomics

FEBRUARY 3, 2022

First, the implied promise: Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. What if you later decide to just keep control? (You

Liquidity Event 62

Liquidity Event Preferred Stock Dividend Equity 62

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

Berkonomics

FEBRUARY 23, 2017

If you own a significant piece of the business, is this a time to consider planning an eventual exit or liquidity event? [Email readers, continue here…] But this question begs for a positive answer. How would you like to see your finish line? Or do you plan to pass control to the next generation if appropriate?

Liquidity Event 102

Liquidity Event Valuation Email Management 102

Berkonomics

SEPTEMBER 20, 2018

Most entrepreneurs and certainly all investors would like to see “a positive liquidity event” (a good sale of the business) someday. Not only will group focus upon the possibility of a liquidity event, it will begin to focus upon a number of possible buyers. So, that’s the reason for this insight.

Liquidity Event 48

Liquidity Event Intellectual Property Naming Acquisition 48

Gust

JUNE 7, 2014

Every investment round in a company is made on the basis of extensivepaperwork (often upwards of 100 pages in total) specifying *precisely* what happens when it comes time to pay out the proceeds (if any) from the sale or dissolution of the company.

Warrant 157

Warrant Preferred Stock Early Stage Common Stock 157

Berkonomics

APRIL 20, 2023

The Angel Capital Association recently published a study contributed to by several of my friends quoting that seventy percent of investments made by angel investors to date return less than the amount invested – upon a sale or closing of the business – the great majority of these outright losses as businesses die.

SBA 62

SBA Angel Investor Early Stage Liquidity Event 62

Berkonomics

SEPTEMBER 12, 2013

Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale. But most of us dream of selling the business someday for lots of money and building our wealth upon that event. The liquidity event and beyond'

Liquidity Event 76

Liquidity Event Intellectual Property IPO Equity 76

Berkonomics

JUNE 12, 2014

So co-management is the second group to share in the bounty upon a liquidity event. Those who receive options but leave the company before a liquidity event may either purchase those shares represented by the options upon exit from the company, or lose the right to those shares, often 60 days after their exit.

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

Women Entrepreneurs Can

NOVEMBER 19, 2022

They can also help you develop your product and sales channels. Investors receive a healthy return on investment when the company reaches a liquidity event. This is done by evaluating the product’s potential market, the sales process, and the company’s team. They may also provide a mentorship network.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Berkonomics

OCTOBER 24, 2013

Next week, we begin again with new insights from startup through liquidity event, including guest postings by some of the nation’s best known angel investors and entrepreneurs. The liquidity event and beyond' Stay tuned! – Dave. Just saying….

Liquidity Event 70

Liquidity Event Entrepreneur Stock Options Angel Investor 70

Startup Professionals Musings

DECEMBER 14, 2014

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Berkonomics

NOVEMBER 15, 2018

You’ll quickly be drawn into the governance of the organization and introduced into the process of discovery, coaching, leading deals, herding investors, serving on boards and helping entrepreneurs toward liquidity events. The rewards of angel investing. Non-profit boards and volunteering.

Liquidity Event 48

Liquidity Event Early Stage Government Leadership 48

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. So be aware that professional investors are in your company for the eventual large profits at the liquidity event.

Liquidity Event 97

Liquidity Event Initial Public Offering Dividend Valuation 97

Hunter Walker

SEPTEMBER 29, 2022

So for the most part a venture investor holds their equity until the company exits via an acquisition, IPO, or some sort of other liquidity event (management buyout, whatever). Conversely, if you’re not a good picker, it’s difficult to overcome that, even if you had perfect timing on secondary sales.

Venture Capital 126

Venture Capital Cap Table LP Equity 126

Berkonomics

SEPTEMBER 27, 2018

But they occur often enough to watch for and take advantage of if ready to make the run for a liquidity event. There are natural high points in one or both that may not be obvious until looking back.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

Berkonomics

OCTOBER 4, 2018

I cannot recall ever attending a closing dinner for a sale in which we returned only a portion of the investor group’s money. In fact, I don’t recall any formal post-sale meeting at all; even to digest the lessons learned from the entire experience, a missed opportunity for all. But the silence….

Sales 54

Sales Investment Bankers Initial Public Offering Early Stage 54

Startup Professionals Musings

AUGUST 7, 2015

Customers may be attracted to your marketing message, but investors look harder at the startup team, seeking superior expertise in the key areas of growing a business, product domain, financial, marketing and sales. Specific elements of your marketing and sales plans. 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. If you don’t plan a liquidity event, you won’t find many investors interested.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

AUGUST 19, 2017

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Startup Professionals Musings

AUGUST 13, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Competing with IBM, Microsoft, and other large companies should never be minimized.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283