Both Sides of the Table

MAY 4, 2010

We discussed whether investing in the second largest player in a category makes sense given that Groupon is 10x the revenue, 3.5x But LivingSocial is reportedly doing around $180,000 per day in gross revenue. If this figure is accurate – it’s certainly a very large business even when you look at net revenues.

IPO 236

IPO .Net Venture Capital Strategic Investors 236

Austin Startup

OCTOBER 8, 2017

I’ve in some ventures thought that if I could just stop the overhead and expenses for a couple of months, I’d have no problem getting the revenues up to plan. The overhead won’t stop, but incoming investments and revenue streams may take an unwanted hiatus.

Technical Review 48

Technical Review Strategic Investors Hiring Software Review 48

BeyondVC

NOVEMBER 12, 2003

One of the questions I was asked today was how an early stage company can make a strategic investment successful. Show me the revenue-I would rather have an OEM or reseller deal than a strategic investment. Strategic investments do not mean anything if you are not going to generate revenue for your company and for your partner.

Strategic Investors 60

Strategic Investors Due Diligence Early Stage Exit Strategy 60

Both Sides of the Table

JULY 10, 2010

You have to be selected to present and it is typically reserved for companies that have already raised early-stage capital and are well into revenue growth. Banks are particularly helpful with raising money from “strategic&# investors, which often means corporate investors such as Intuit, SAP, AMD, Salesforce.com and the like.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Both Sides of the Table

JUNE 18, 2010

Are “strategic investors&# (e.g. industry investors rather than VCs) a good idea for entrepreneurs. Software Helps companies rapidly convert unstructured online data and content into structured data assets that can be used to create new products, revenue Streams, and enhance current online data sets.

Venture Capital 225

Venture Capital Non-Compete Vertical Europe 225

Austin Startup

NOVEMBER 6, 2017

Many angel investors, and also strategic investors, are comfortable investing in LLCs, particularly under a convertible security structure that doesn’t immediately result in equity holdings. But at this point it has more to do with inertia and a desire to minimize their own legal bills than any real legal issue.

Delaware 48

Delaware LLC Startup Silicon Valley 48

YoungUpstarts

JUNE 26, 2020

Many entrepreneurs waste time talking to investors who are at the wrong stage, sector or tribe. When a VC’s website says they do “early stage” – to a VC that means a product has already been built and generating some revenue, while to an entrepreneur it means “just an idea.”.

Finance 205

Finance Silicon Valley Valuation Startup 205

VC Cafe

NOVEMBER 28, 2010

In addition to Intel Capital, investors include Pitango Venture Capital , Battery Ventures , and strategic investors. Founded in 2006, Anobit has several of Israel’s top high-tech entrepreneurs are behind it: chairman and CEO Prof. Ehud Weinstein; president Ariel Maislos; and Ofir Shalvi.

Israel 94

Israel Flash Venture Capital Acquisition 94

BeyondVC

JANUARY 10, 2004

Yes, I know I may be oversimplifying, but the point I want to make is that revenue does not equal profit, especially when many of the new growth areas that technology companies are pursuing have single digit margins as a starting point. From a strategic investor perspective this makes a ton of sense-more Intel chips in the home.

Strategic Investors 78

Strategic Investors IPO Channel Global 78

Scalable Startup

FEBRUARY 10, 2012

Big Revenues vs. little revenues – a strategy question that startups often struggle with. or look for major large chunks of money from partnerships or strategic investors? Almost every company with long term success has used this dual revenue plan, throughout history. little revenues. Big Revenues.

Revenue 22

Revenue Early Stage Affiliate Strategic Investors 22

BeyondVC

OCTOBER 11, 2007

Put yourself in these entrepreneurs’ shoes – you launch a great product or service today, usage is growing, revenue is nil or minimal, and cocktail party chatter and buzz are at its highest. Two days ago it was Jaiku being bought by Google and this morning CBS announced that it is buying Dotspotter , a 10 month old gossip blog.

Net Present Value 78

Net Present Value Strategic Investors Early Stage Revenue 78

Berkonomics

AUGUST 3, 2023

Whether the partner is a supplier looking to gain a lock on your business as it grows or a customer looking to create a competitive barrier through use of your product, such an investment typically carries fewer restrictions than from a professional investor and less oversight.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

This is going to be BIG.

DECEMBER 21, 2017

Nothing seems to apply--you're not a tech company, you bootstrapped your way to millions in revenues before taking on capital, and you sell mostly through brick and mortar. Technically, that's what we called it, but it didn't seem entirely appropriate given that it had already been up and running for years and had millions in revenue.

Cap Table 94

Cap Table Cofounder Valuation .Net 94

BeyondVC

OCTOBER 8, 2003

The term sheet that the company signed was led by a strategic investor and contingent on finding another VC as a co-lead. While he had some strong interest, no other VC or purely financially driven investor was willing to step up at that price. Many of you may ask why is that a problem.

Sweat Equity 60

Sweat Equity Term Sheet Bankruptcy Salary 60

BeyondVC

OCTOBER 8, 2003

The term sheet that the company signed was led by a strategic investor and contingent on finding another VC as a co-lead. While he had some strong interest, no other VC or purely financially driven investor was willing to step up at that price. Many of you may ask why is that a problem.

Sweat Equity 60

Sweat Equity Term Sheet Bankruptcy Salary 60

Berkonomics

JUNE 8, 2017

Whether the partner is a supplier looking to gain a lock on your business as it grows or a customer looking to create a competitive barrier through use of your product, such an investment typically carries fewer restrictions than from a professional investor and less oversight.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Hunter Walker

JUNE 7, 2016

Bento Box – our mobile-friendly website was created by them to help drive revenue and customers. She and I retain the majority of the business, but we brought on strategic investors to help finance our business and to help us grow our company to expansion. Revel – our iPad-based point of sale.

Caching 86

Caching DC Social Media Cofounder 86

BeyondVC

JANUARY 10, 2004

Yes, I know I may be oversimplifying, but the point I want to make is that revenue does not equal profit, especially when many of the new growth areas that technology companies are pursuing have single digit margins as a starting point. From a strategic investor perspective this makes a ton of sense-more Intel chips in the home.

Strategic Investors 60

Strategic Investors IPO Channel Global 60

BeyondVC

OCTOBER 11, 2007

Put yourself in these entrepreneurs’ shoes – you launch a great product or service today, usage is growing, revenue is nil or minimal, and cocktail party chatter and buzz are at its highest. Two days ago it was Jaiku being bought by Google and this morning CBS announced that it is buying Dotspotter , a 10 month old gossip blog.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

Berkonomics

JANUARY 20, 2010

Whether the partner is a supplier looking to gain a lock on your business as it grows or a customer looking to create a competitive barrier through use of your product, such an investment typically carries fewer restrictions than from a professional investor and less oversight.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Hunter Walker

JUNE 7, 2016

Bento Box – our mobile-friendly website was created by them to help drive revenue and customers. She and I retain the majority of the business, but we brought on strategic investors to help finance our business and to help us grow our company to expansion. Revel – our iPad-based point of sale.

Caching 48

Caching DC Social Media Cofounder 48

VC Cafe

APRIL 15, 2024

These platforms, leveraging vast amounts of user data, were able to offer targeted advertising solutions that were both more effective and appealing to advertisers, significantly eroding the ad revenue streams that publishers had relied on. It could help bring back some of that classified ad revenue that was lost. What do you think?

Generative AI 142

Generative AI Media Artificial Inteligence Vertical 142