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

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. Revenue must come from a primary source (as opposed to advertising or other third party sources). VC will shrink. Oh yes it will. Price MUST be in a certain range.

LP 311

LP Technical Review Early Stage Silicon Valley 311

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

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

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. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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?

Equity 78

Equity Revenue Cofounder Colorado 78

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.

Revenue 60

Revenue Technical Review Software Review Equity 60

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.

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

David Teten

JULY 24, 2019

If you’re looking for a job in venture capital (or private equity), here is a list of compensation benchmarks, plus all the recruiters I’m aware of who do searches for roles inside venture capital firms, Analyst through Partner. Heidrick: PRIVATE EQUITY COMPENSATION TRENDS IN NORTH AMERICA: 2018. Compensation Benchmarks.

Venture Capital 60

Venture Capital Private Equity Technical Review North America 60

Startup Professionals Musings

APRIL 27, 2016

Find a private equity firm or friendly individual. If you can convince investors that your startup will generate a solid revenue stream, and the market won’t go away any time soon, they may see an opportunity for an ever larger return. Most experts don’t recommend this approach as your default strategy anymore.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Steve Blank

MAY 17, 2022

The opportunity is so large that there are hundreds of AI accelerator startups designing their own chips, funded by 10’s of billions of venture capital and private equity. Helpful for predicting numerical values based on different data points, such as sales revenue projections for a given business.

Artificial Inteligence 425

Artificial Inteligence Software Review Algorithm Technical Review 425

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. These usually play a role in the very early stage of your business, primarily pre-revenue. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

ConversionXL

MAY 14, 2014

Internally, Adria was able to summarize eCommerce by one simple equation: Visitors *conversion rate *Average Order Size = Revenue. Always show revenue gains , not conversion increase percentages. Meanwhile this company gets bought by a private equity group who installs a new CEO. Show that others have done it.

Conversion 124

Conversion eCommerce Technical Review Software Review 124

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. 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 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

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

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. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2009 it boasted revenue of $4.49 KOREA’S POSCO SIGNS AGREEMENT SEEKING ISRAELI R&D.

Israel 79

Israel Bandwidth Framework Forecast 79

The Startup Magazine

FEBRUARY 21, 2024

Are there new revenue streams you can tap into? The strategic pivot to new market segments opened up additional revenue streams, and the operational overhaul significantly improved profit margins. Can you address the impression that private credit firms lend only to “bad” or “risky” businesses?

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

The Startup Magazine

AUGUST 11, 2023

This suggests the firm should have a list of paying customers, consistent sales cycles, a clear value proposition, and a developing revenue pipeline in the ideal situation. The criteria change after a company reaches the growth stage when it is deemed to have attained product market fit.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

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

Rob Go

DECEMBER 28, 2011

61M in Q3 revenue, up 28% YoY. Wayfair: This is somewhere between an exit and and a growth round, but the largest independent ecommerce company focused on the huge home/furniture category raised a $165M round from a group of growth, private equity, and venture investors. Tripadvisor: An amazing entrepreneurial story. market cap.

Technical Review 54

Technical Review Boston Software Review IPO 54

YoungUpstarts

JANUARY 3, 2018

When, over a period of six years, CSX Railroad experienced a 51 percent drop in its biggest revenue source — coal — margins dropped to the lowest of the major railroads. When you experience permanent market shifts, as the decline in coal revenue was for CSX, don’t be afraid to make employees, and even customers, unhappy.

Agile 113

Agile Malaysia Private Equity Non-Compete 113

VC Cafe

OCTOBER 25, 2024

Well done Eyal Malinger and Oren Peleg and team Resurge Growth Partners on the first closing of an investment vehicle focused on helping companies caught between the venture capital and private equity worlds. In total, generative AI companies received $35 billion in 2024.AI AI companies have reached a combined value of $9 trillion.

Israel 78

Israel Generative AI Taiwan Arizona 78

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.

New York 114

New York Technical Review Networking Advisory Board 114

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?

Cram Down 418

Cram Down Founder Venture Capital Recapitalization 418

ConversionXL

DECEMBER 7, 2017

That summer a private equity fund acquired the assets of the company. That latter term is used to describe an initial offer that generates enough revenue to offset the cost of acquiring a customer. of our total sessions, still contributed 43% of the revenue during this period. They brought me in as CMO. Whales rock.

Bankruptcy 106

Bankruptcy Marketing Campaign Intellectual Property 106

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

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

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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

YoungUpstarts

DECEMBER 16, 2012

It’s free for consumers and money changers, and obtains revenue through advertising and value added-services for money changers. The startup also managed to get some funding from private equity firm Holt Asia Investment, which will help it expand outside Singapore once they are ready for their next phase of growth.

Singapore 237

Singapore Private Equity Asia China 237

Lightspeed Venture Partners

AUGUST 17, 2014

CEO and co-founder Vincent Yang, a mathematician by training, had built a system while he was at Summit Partners, a private equity firm, to comb the Web looking for investment opportunities. Enterprises that use EverString gain a fundamental edge over their competition in building revenue and market share.

B2B 96

B2B Revenue Private Equity Artificial Inteligence 96

The Startup Magazine

SEPTEMBER 23, 2021

The $130 million Series D investment round was co-led by New York-based global private equity and venture capital firm Insight Partners and Hanaco Venture Capital. The new Series D round includes $100 million in primary and $30 million in secondary funding, elevating Lightricks’s total funding to $335 million.

Private Equity 167

Private Equity Developer Venture Capital Merger 167

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Both Sides of the Table

OCTOBER 6, 2012

I know one friend who ran QuickBooks for 3 years and is now in the process of having to restate his financials for the past 3 years culling through millions of records to normalize his revenues. 10:30 Question from the chat: How do you define the difference between traditional VC and private equity?

Los Angeles 303

Los Angeles Detroit Venture Capital Lean 303