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Praying to the God of Valuation

Both Sides of the Table

I started my first company in 1999 and was admittedly swept up in all of this: Magazine covers, fancy conferences, artificial valuations and easy money. Between 2006–2008 I sold both companies that I had started and became a VC. Starting in 2009 I began writing checks consistently, year-in and year-out.

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The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. And the truth is that several entrepreneurs prefer it this way. By definition?—?I’m dot-com bonanza. Seed has become an option factory for many.

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8 Strategies For Business Professionals To Stay Ahead

Startup Professionals Musings

As a business advisor and advocate for entrepreneurs, I find myself almost always talking and writing about change. With a bit of humor, he provides some serious guidelines for struggling career professionals looking to move up, and new entrepreneurs looking to build a company. Business is not rocket science.

Startup 106
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

But what IS the right amount of burn for a company? Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Gross Burn vs. Net Burn.

Startup 383
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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are a safer option than equity. Be professional about it.

Funding 123
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Every Startup Goes Through Distinctive Funding Phases

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million-dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Growth and exit stage.

Startup 122
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Early stage money: The problem with PPMs

Berkonomics

Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more. The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D).

Writing 199