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Praying to the God of Valuation

Both Sides of the Table

We had nascent revenues, ridiculous cost structures and unrealistic valuations. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst. I am having fun again.

Valuation 466
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3 Ways To Make In-House Filing Less Taxing

YoungUpstarts

And as the Internal Revenue Service continues to wage war against fraud and identity theft, filing clean, complete returns is key — especially as your business scales. If your startup is eyeing international expansion early on, your tax compliance and planning needs, both home and abroad, immediately ratchet up.

Ratchet 113
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Abandoned Cart Email Offers: What We Learned from 1,000 Ecommerce Brands

ConversionXL

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 112
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Bad Notes on Venture Capital

Both Sides of the Table

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

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Abandoned Cart Email Offers: What We Learned from 1,000 Ecommerce Brands

ConversionXL

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.

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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

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.

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What to do when you get screwed

The Startup Toolkit

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.