The Startup Toolkit

JANUARY 10, 2017

Investors can delay until you’re desperate and then ratchet the terms. They’re now profitable, have a great team, and doing half a million quid a year in recurring revenue. It’s not just cofounders. Partners can break their contracts. Suppliers can fail to deliver. Employees can blackmail or extort you. Not a wink.

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20

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. Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Up and Running

MAY 21, 2015

What this means, is that he gets paid not as a portion of the profit, but as a portion of the overall revenue, regardless of the profit. The version of “anti-dilution protection” that most benefits outside investors is commonly called a “full ratchet.” Liquidation preference.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

Up and Running

APRIL 27, 2012

A more fundamental problem that entrepreneurs can control, however, is related to their understanding of the key revenue drivers of their businesses. The more visitors you bring to your website the greater your potential to derive revenue from them regardless of your business model, and without costs growing in proportion.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

ConversionXL

NOVEMBER 20, 2019

So cart abandonment emails are often a top revenue generator. So, simply sending an abandoned cart email (without an offer) may increase your revenue. Some companies may have found that fewer full-price cart recoveries generated more revenue than a higher volume of discounted sales. Cart abandonment is a huge issue in ecommerce.

eCommerce 67

eCommerce Email Ratchet Campaign 67

Jeff Hilimire

OCTOBER 7, 2013

And get this, over 80% of ALL REVENUE generated from mobile devices was via games. I’m betting that as more mobile game studios generate substantial returns, the angel and VC community will ratchet up their interest in investing in these studios and entrepreneurs. Yeah, I’ll bet on that.

Mobile 48

Mobile Ratchet IPO Atlanta 48

Campus Entrepreneurship

APRIL 23, 2012

The result is a business that has generated revenue from the day it opened, said Mr. Parthasarathi. And Mr. Parthasarathi’s story is not an isolated one: In recent years, New York’s colleges and universities have ratcheted up their commitment to supporting budding entrepreneurs. You can’t teach failure.”.

New York 40

New York Ratchet New York City Startup 40

Rob Go

NOVEMBER 30, 2015

Investing in companies with scaling revenue and tons of momentum means that you are paying high prices, which then means that the investor is either putting more dollars at risk than they would be comfortable with, or living with lower average ownership across their portfolio. This has started to unfold.

Later Stage 28

Later Stage Marketing Early Stage Ratchet 28

Up and Running

MAY 13, 2015

Other links: The Time to Think About the 3D-Printed Future is Now (HBR), Space Station Builds 3D-Printed Ratchet Wrench (NASA), Shapeways.com (3D printing marketplace). In addition to that top line revenue, you’re also going to have your major expenses, you’re going to have your costs, those kinds of things.

Business Plan 60

Business Plan Marketing Oregon Small Business 60

Steve Blank

JUNE 18, 2020

This return to the status quo, with a restoration of Huawei’s access to TSMC’s foundry, may simply require negotiating some form of trade deal or agreeing to restrictions on the sale of Huawei networking gear ( 34% of their revenue ). However, it requires the Chinese to back down. And they may have decided that the Rubicon has been crossed.

Taiwan 436

Taiwan China United States Arizona 436