Startup Professionals Musings

FEBRUARY 25, 2023

Equity investments are not loans, so there is no loan payback period or interest payments. Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. What accelerated this was the collapse of the public stock markets. VC will shrink. Oh yes it will.

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LP Technical Review Early Stage Silicon Valley 311

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly.

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Private Equity Venture Capital Equity Technical Review 60

Both Sides of the Table

SEPTEMBER 29, 2009

But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. Why did the VC markets freeze so quickly? Market downturn – We all know that investors move in herds. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations.

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Burn Rate Valuation Pre-Money Valuation Private Equity 263

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Usually that’s the point in the meeting where a VC realizes that this meeting isn’t going to go very well.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

David Teten

DECEMBER 8, 2010

I’ve given a number of presentations to senior executive groups on expert networks; below are two slide decks: How to Earn More Consulting Revenue from Gerson Lehrman and Other Expert Networks. How Executives Can Work with Private Equity and Venture Capital Portfolio Companies.and Buy a Company with Private Equity Backing.

Networking 122

Networking Private Equity SEC Software Review 122

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. The 11 Steps of Investing in Private Companies.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

The Startup Magazine

FEBRUARY 21, 2024

The increasing importance of private credit in today’s market cannot be overstated. The challenges I faced building companies were multifaceted, ranging from securing adequate funding to navigating the labyrinth of market dynamics and building a team that shares a common vision and drive.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

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Revenue Technical Review Software Review Equity 60

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

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Equity Revenue Cofounder Colorado 78

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. The next reason is to establish a competitive advantage over your competition and quickly acquire a substantial market share. Both of which are expensive and time-consuming.

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Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JUNE 6, 2013

If you have a deal that is related to bringing in sales and you do want to have a perpetual compensation you can use some version of a Lehman Formula that incentives the person upfront as they are bringing in revenue for you, then caps it off on an ongoing basis. Balance the risks to your reputation. White Label.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

Steve Blank

MARCH 16, 2016

Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class. FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

ConversionXL

DECEMBER 7, 2017

That summer a private equity fund acquired the assets of the company. Within three months all marketing KPIs had improved. On the marketing side, I attribute our success to one thing: using data to effectively model out our customer behavior, and then develop the appropriate communication to improve it. The CEO cut costs.

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Bankruptcy Marketing Campaign Intellectual Property 106

Startup Professionals Musings

APRIL 27, 2016

Equity investments are not loans, so there is no loan payback period or interest payments. Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 120

ConversionXL

MAY 14, 2014

Even worse, if your company is one with a silo mindset, where designers go over here, marketers are over here & IT belongs in a cave somewhere over there – the thought of even having one cohesive “Conversion Team” might seem laughable, if not altogether impossible. The Story of How Iztok Sold CRO Within An Airline.

Conversion 124

Conversion eCommerce Technical Review Software Review 124

The Startup Magazine

AUGUST 11, 2023

It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step. pexels A war chest is virtually always a competitive edge in all aspects that count, including employing key staff, public relations, marketing, and sales. Hence they will miss the finish line.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

On the other hand, it’s a whole universe and you’d need an interesting perspective on why you should go attack that market and face all that competition and noise and everything that’s in the market. So when you’re thinking about marketing positioning to me, that side of it is the interesting side of it.

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Technical Cofounder Cofounder Software Review Management 220

Startup Professionals Musings

JULY 22, 2020

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. Investors call this the seed stage , where money is required to build a market and a real product. The final product works great, and all the early users love it.”

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. This math works in a normal market…. Unfortunately, it’s no longer a normal market. The World Turned Upside Down.

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Burn Rate Startup Valuation Sales Cycle 436

YoungUpstarts

JANUARY 3, 2018

by Amanda Setili, author of “ Fearless Growth: The New Rules to Stay Competitive, Foster Innovation, and Dominate Your Markets “ Activist investors were really busy in 2017. Lesson 4: When the market is tough, take the hard medicine. Activist Investor Target: CSX Railroad.

Agile 113

Agile Malaysia Private Equity Non-Compete 113

VC Cafe

NOVEMBER 3, 2010

In 2006, PMC-Sierra acquired Herzliya-based Passave, a developer of system-on-chip semiconductor solutions for the Fiber To The Home (FTTH) access market, for $300 million. Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. billion, of which $2.5

Israel 79

Israel Bandwidth Framework Forecast 79

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. David Teten: Who are the target clients, and how do they leverage experts? Previously posted at Forbes.

New York 114

New York Technical Review Networking Advisory Board 114

Rob Go

DECEMBER 28, 2011

Perhaps it’s been missed by most, but I think it was a remarkable year for this sector within this market. market cap. 61M in Q3 revenue, up 28% YoY. Raised $174M in its IPO in April, current market cap ~$550M. in its IPO, current market cap of $282M. Spun out of Expedia and listed on the NASDAQ at a $3.5B

Technical Review 54

Technical Review Boston Software Review IPO 54

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Separate marketing from sales for further leverage.

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Mezzanine Private Equity Bandwidth Metrics 368

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. Investors call this the seed stage , where money is required to build a market and a real product. The final product works great, and all the early users love it.”

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

VC Cafe

OCTOBER 25, 2024

Awesome news Omer Slavin and team BiltOn on your $15M series A for your construction operations and risk management platform that already serves 70% of the local market! Kudos Or Shoshani and team Stream.Security on securing a $30M series B for your cloud detection and response platform !

Israel 78

Israel Generative AI Taiwan Arizona 78

VC Cafe

JANUARY 10, 2011

V iola Private Equity , an Israeli PE fund with $164 million under management for technology buyouts, has announced a $7 million investment in Zend , the leading provider of open-source and commercial solutions based on PHP web applications.

Private Equity 87

Private Equity Equity PHP Israel 87

Hearpreneur

JANUARY 7, 2022

So, I started a sales and marketing company and haven't looked back since. I got in touch with the right people, learnt how to market my website and that is how I got started. Today, we are a small business with a consistent stream of revenue and an utterly satisfied team. They were sold in a matter of months.

Entrepreneur 127

Entrepreneur Technical Review Software Review Non-Compete 127

Duct Tape Marketing

SEPTEMBER 10, 2019

Transcript of Advice for Entrepreneurs Who Want to Sell Their Companies written by John Jantsch read more at Duct Tape Marketing. John Jantsch: Hello and welcome to another episode of the Duct Tape Marketing podcast. And I’m guessing one of them certainly is a lot of, “What’s the revenue? Back to Podcast.

Entrepreneur 68

Entrepreneur Switzerland Revenue Differentiation 68

Steve Blank

APRIL 26, 2022

Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. Venture capital, like most private equity, is an unregulated financial asset class – anything goes. Why do VCs Do This?

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Cram Down Founder Venture Capital Recapitalization 417

Both Sides of the Table

SEPTEMBER 12, 2010

If the goal is simply to get the basic details (revenue, customers, staff numbers, prior funding) then no judgment is required. They are at the tops of their classes and want to get into private equity or venture capital some day. They are often from the best universities: Harvard, Stanford, Wharton, Princeton, Yale.

Programming 294

Programming Entrepreneur Private Equity Equity 294

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. Online Marketing. Bringing Innovation to Market. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Innovation | Fridays. Email address: Home.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Lessons Learned

MAY 25, 2020

And then from there, I was running a fitness company on the west coast by the name of 24 Hour Fitness, which was private equity backed and quite a bit of debt. I think about this in customers and protecting your employees and customers, always protect your P&L, your revenue. So, how are you investing in being even better?

Technical Review 148

Technical Review Balance Sheet Texas Austin 148

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. Investors call this the seed stage , where money is required to build a market and a real product. The final product works great, and all the early users love it.”

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

OneBox.com — On $60m invested, sold for $850m 18 months after launch to J2 just before market crash — score! Seven — On $60m invested, still private, cancelled an IPO. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster.

IPO 240

IPO Flash Bootstrapping Private Equity 240