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.” Simply put, a VC wants to evaluate how much cash you’re raising and whether this amount is realistic.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

The Startup Magazine

NOVEMBER 9, 2021

While true fraud and merchant error chargebacks should not be fought, as they are considered by card issuers to be the merchant’s responsibility/liability, friendly fraud chargebacks should be contested, otherwise your business is at threat of losing revenue. Friendly Fraud Chargeback Categories. Tips for Managing Friendly Fraud Chargebacks.

Management 197

Management Software Review Warrant Revenue 197

Steve Blank

DECEMBER 10, 2014

Fortunately after 67 interviews we now have a fully developed customer segment identifying each customer type, the key value propositions, and a developing revenue model. Now the students spend time in customer discovery and learn why validating the business model for their device is so important. We still have lots of work to do.

Maryland 280

Maryland Lean DC Virginia 280

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. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

The Startup Magazine

OCTOBER 26, 2020

In particular, pay close attention to the revenues from these customers. If there are many warrant issues, take note. This should include the concentration of its customers and the sales pipeline. Look at the top 20 customers of that company. Look at the customer concentration. Also, the satisfaction of customers is important.

Technical Review 112

Technical Review Software Review Due Diligence Merger 112

Up and Running

APRIL 22, 2020

This does not mean that you need 2-3 years’ worth of documents showcasing your revenue and cost of goods sold, but you’ll likely need reports that show at least 12-months of financial activity. Many startups are small, local businesses with hopes of eventually rapidly scaling—but they’re still establishing a track record.

SBA 139

SBA Forecast Software Review Business Plan 139

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Gust

MAY 24, 2012

Options and warrants, when issued, are also typically exercisable for shares of Common Stock. As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers.

IPO 159

IPO Equity Common Stock Stock 159

View from Seed

APRIL 30, 2015

We also spell out the interest-only period, the amortization period, the warrants, the interest rate, and then some high level legal terms we would include in the documents and highlight in the term sheet — similar to a VC term sheet. Traction and revenue? In terms of negotiation, there are always hot buttons. Business model?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

ConversionXL

JANUARY 21, 2019

Increase recurring revenue. An apology for shipping incorrect products to a single customer, for example, doesn’t warrant a public apology. Repeat customers generate up to 40% of a store’s overall revenue , and retaining them can be up to 20 times cheaper than acquiring new customers. Increase brand reputation.

Software Review 125

Software Review Social Media Demand Advertising 125

ConversionXL

JUNE 2, 2022

It’s proven to drive more revenue , improve customer experience , and power growth. But the customer is worth more and the target approach of ABM is warranted. Does the client offer more than revenue? If so, even a small deal may warrant a targeted approach. Alignment can make all the difference to a business.

Lead Generation 94

Lead Generation Marketing Sales Cycle Campaign 94

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

DECEMBER 8, 2021

A wiser strategy—especially for key revenue-potential products—includes a portfolio of patents protecting the product’s various unique functionalities and component parts. Proper alignment between the patent portfolio and revenue is financially savvy. Securing the essential European hubs, (i.e.,

Technical Review 88

Technical Review Portfolio Startup Intellectual Property 88

YoungUpstarts

NOVEMBER 19, 2019

This could happen by reducing expenses, increasing your sales, and generating more revenue. Even though improving your revenue and increasing sales are complementary goals, each area requires a unique strategy if your company is going to see more cash in the bank. Differentiating Between Revenues and Sales.

Revenue 165

Revenue Sales Warrant Differentiation 165

Up and Running

AUGUST 7, 2018

If the money isn’t there or the workload doesn’t warrant bringing in new employees, you should reconsider scaling. . Some of these numbers include revenue over a set period of time. What are future revenue growth projections indicating? Regardless of the size of your business, there is a right and wrong time to scale.

Software Review 94

Software Review Warrant Demand Employee 94

YoungUpstarts

MARCH 29, 2018

Make sure you allow for any difference in revenue between what was predicted in your plan and what you are taking in reality. Are all the things you’re paying for worth having – do they get used enough to warrant the cost? Compare the budget you set for each expense against the accounts figures for that cost area.

Technical Review 100

Technical Review .Net Warrant Cost 100

ConversionXL

JANUARY 10, 2014

Nivea for Men – a men’s skincare product (which is a highly saturated market) gives us this excellent case study where the SWOT analysis was essential to a strategy that allowed them to expand the market and grow international revenues by 20% ! They even won the consumer voted FHM award for best men’s skincare product line.

Mobile 129

Mobile Warrant Revenue Customer 129

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Cloud-based data warehouse Snowflake had an ambitious goal to triple its revenue.

Customer 98

Customer Marketing Channel Acquisition 98

ConversionXL

JULY 22, 2021

Check any page showing a 410 error to ensure they are permanently gone and that no content could warrant a 301 redirect. This is because AMP pages serve a basic version of your webpage that doesn’t allow you to earn ad revenue or access the same deep level of analytics. 410: Page permanently deleted. 5xx status codes.

Technical Review 162

Technical Review SEO Software Review XML 162

David Teten

OCTOBER 1, 2015

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. Lastly, I would suggest a range of equity or warrants is offered, vs. a fixed amount. Even more importantly: they went through it.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Berkonomics

FEBRUARY 13, 2025

Use stock options and warrants to pay for service only rarely. Service providers as web designers, public relations firms, even venture banks granting loans, often offer higher value services for a lesser amount of cash and some amount of stock options or warrants (written promises to sell stock at a set price for a future period in time).

Stock Options 106

Stock Options Warrant Common Stock Dilution 106

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. How will you price the next round? Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

ConversionXL

JANUARY 18, 2022

HubSpot has built its brand to over 100,000 customers and $1 billion in annual recurring revenue in 2020. However, even if you’re not familiar with these client brands, that eight other companies have trusted, Buffer gives them enough credibility to warrant consideration. The marketing partners speak for themselves.

Equity 94

Equity Marketing Social Media Software Review 94

ConversionXL

NOVEMBER 22, 2022

High engagement results in increased awareness and strong brand affinity, which leads to increased revenue. Does improving bounce rate correlate with improved revenue and conversion metrics? Successful terms warrant more budget. To find the average value of a sale, divide total revenue by the number of orders over the period.

Metrics 105

Metrics Analytics Marketing Acquisition 105

Startup Professionals Musings

OCTOBER 29, 2013

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Calculate what you need, and add a buffer.

Valuation 258

Valuation Early Stage Warrant Common Stock 258

ConversionXL

APRIL 27, 2019

The other two groups—those researching and those who have made a decision—warrant added attention. The first group is pretty much hopeless. It’s difficult to sell them anything since you need to sell the problem first. People who are res earching. In most niches, these people form the majority.

Sales 128

Sales Conversion Design Video 128

Occam's Razor

JULY 1, 2013

More revenue! #2: An obsession with SEO and PPC is pretty much warranted in most companies, across platforms (desktop, mobile – it is particularly heartbreaking how poor most companies do on mobile platforms). Go do one for your own site. I promise it will be reveling. And what do happier customers deliver?

Search 137

Search Analytics PPC Green 137

Startup Company Lawyer

MAY 4, 2009

June 23rd, 2009: Create a revenue model for your business. Warrants and Bonus Pool. Each founder participating in a semester’s program will sign a Founder Agreement, which includes an obligation to grant a warrant to the Founder Institute to purchase 3.5% Description: What it takes to get from an idea to an offering.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Startup Professionals Musings

SEPTEMBER 19, 2012

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Calculate what you need, and add a buffer.

Valuation 236

Valuation Early Stage Warrant Common Stock 236

ReadWriteStart

JANUARY 27, 2011

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. million in revenue. Social CRM is becoming quite a trend, and CrowdEngineering really pushes the envelope on the subject.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Startup Professionals Musings

JULY 8, 2011

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Calculate what you need, and add a buffer.

Entrepreneur 234

Entrepreneur Valuation Early Stage Warrant 234

Both Sides of the Table

MARCH 11, 2010

It places undue pressure early in the company’s history to “do big things&# when sometimes what is warranted is more prudence. Your revenue will take longer to ramp then you think. It also takes options off the table if you eventually find out that this isn’t a VC backable business. add a buffer.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

Software By Rob

MARCH 26, 2015

The interesting part is that my own path moving from consulting to products followed the same steps, as you can see in my product revenue chart from the past decade: Each revenue jump is when I made the move to the next step of the Stairstep Approach. Step 2: Rinse and Repeat. Lifetime value.

Bootstrapping 41

Bootstrapping Technical Review SEO Revenue 41

Startup Professionals Musings

JUNE 9, 2010

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Calculate what you need.

Valuation 227

Valuation Early Stage Warrant Startup 227

View from Seed

OCTOBER 15, 2014

The goal isn’t to suddenly self-sustain and generate tens of millions in revenue immediately following a seed investment (though nobody would argue if that happened). This could slot into housekeeping, but each hire makes such a huge impact on a seed-stage startup that we believe this warrants its very own section as well.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Up and Running

SEPTEMBER 13, 2016

For instance, you could put revenue in your checking account, while leaving a percentage in your savings account to pay off taxes at the end of the year. Hire in-house support: When your business is large enough to warrant it, you can hire a bookkeeper to work in-house. See Also: 5 Signs Your Bank Is a Bad Fit.

Small Business 60

Small Business CPA Finance Warrant 60

crowdSPRING Blog

MAY 2, 2018

And , 35% of small businesses without a website feel their operation is too small to warrant a website. 35% of small businesses without a website feel their operation is too small to warrant a website. Customers will beg to differ. Consumers not only expect businesses to have a website, they view a website as a sign of credibility.

Small Business 73

Small Business Software Review Social Media Marketing 73