Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds.

Venture Capital 295

Venture Capital Startup Class Invest 295

Berkonomics

JANUARY 26, 2017

The rest of the purchase price was concocted from a brew of zero coupon bonds (where the face value is many times the invested amount until the reduced cost bonds mature thirty years later), and borrowing using the target company’s accounts receivable and other assets as collateral for a loan to purchase the company. What power!

Pricing 120

Pricing Sales Tool Equity 120

Berkonomics

FEBRUARY 23, 2023

Companies sometime run out of cash in the midst of their increasing success, and often find that sources of loans or investment are not freely flowing at the moment of need. There are only a few Uber or AirBnB investments to point to – where the street value of the company may ultimately validate that amount of investment.

Pricing 156

Pricing Invest Equity Entrepreneur 156

Tech.Co

MAY 31, 2023

In this guide: Free Business Tools Best Communication Tools Best Cybersecurity Tools Best Project Management Tools Best Marketing Tools Best Financial Tools Best HR tools Best Sales Tools Next Steps: Moving Forward With a Solution Best Free Business Tools for Startups Not every startup will have a budget for smart software. From its 4.3-inch

Tool 128

Tool Startup Software Review Technical Review 128

Berkonomics

JULY 19, 2010

The investor organization is granted the seat as long as the investment remains, and the documents often name the first representative assigned by the investor group to the position. Email readers continue here.] In subsequent insights, we will explore the legal and ethical responsibilities of board members.

Pricing 120

Pricing Invest Startup Sales 120

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. And here’s the “why.”.

Outsource Development 156

Outsource Development Startup Outsource Venture Capital 156

Berkonomics

APRIL 14, 2022

And third, you can invest in direct response advertising. Here you make a pitch with a price attached and ask the target to respond immediately to take advantage of the offer. Email readers, continue here…] And with brand (or lifestyle) advertising, there is no way to directly measure success. Measuring your results.

Advertising 156

Advertising Statistics Pricing Email 156

Berkonomics

JULY 23, 2020

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. Dig into investment agreements for those expensive clauses.

Company 156

Company Companies Sales Venture Capital 156

Berkonomics

FEBRUARY 3, 2022

Of course, you will find yourself in opposition to your investors and some of most of your board members if you do this after taking outside investment. I was able to negotiate a “put” of my shares back to the company at 5x my investment. The advantage of creating an evergreen company. A personal experience that relates.

Equity 156

Equity Course Sales Invest 156

Berkonomics

OCTOBER 5, 2023

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. Time and fixed overhead: [Email readers, continue here…] That relationship between fixed overhead and production time is as critical as any other factor in the success of a young company.

Venture Capital 296

Venture Capital Product Marketing Resource 296

Berkonomics

MARCH 25, 2012

For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.

Invest 321

Invest Startup Email Competition 321

InfoChachkie

APRIL 13, 2015

Avoid a simple pricing mistake which could sink your startup. Because I am cheap and I know that car dealers are incentivized by the manufacturer to hit quarterly and annual sales goals. Thus, the value of a sale at the end of a quarter can be significant, if the sale contributes to obtaining a manufacturer''s incentive.

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Pricing Startup Sales SaaS 100

Berkonomics

MARCH 8, 2018

You do not pay professional investors who are serving on behalf of an investment company or VC and paid by that company. The option price should be set by appraisal under IRS rule 409a, and certainly should be low enough to recognize that common stock options are not worth as much as preferred stock, given the many preferences of the latter.

Venture Capital 256

Venture Capital Equity Sales Invest 256

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first.

Venture Capital 243

Venture Capital Sales Invest Class 243

Berkonomics

NOVEMBER 11, 2021

Incremental profits from companies that later sell for three to five times their original value at the time of their investment may be considered great successes for founders but relative failures for VCs, who must hit for the fences with every early-stage investment. Why it’s so personal to me…. first appeared on BERKONOMICS.

Venture Capital 156

Venture Capital Social Media Invest Marketing 156

InfoChachkie

JANUARY 5, 2015

In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch this 93-second clip and see if you can identify the pricing pitfall addressed in this humorous snippet. Price = Value. How Much For A Rib?

Pricing 100

Pricing Product Startup Customer 100

Berkonomics

DECEMBER 31, 2020

I was chairman of a company that, for twelve years never took a dollar of outside investment. Email readers, continue here…] Grant writing takes skill and immense amounts of time. First, an example of grant-based financing . The effort to write a grant request is not trivial. Other sources of grants.

Equity 156

Equity Writing Education Research 156

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Angel 120

Angel Sales Pricing Equity 120

Berkonomics

JUNE 11, 2020

Email readers, continue here…] As solar panel efficiency increases from the present average of 22% to 30% and more, and as electricity prices rise, the net break even for solar panels should decrease dramatically. Solar panels are getting closer to economic savings. It’s already happening in some sunny areas of the country.

Examples 156

Examples .Net Pricing Email 156

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing.

Venture Capital 266

Venture Capital Class Invest Equity 266

TechCrunch LA

JULY 19, 2022

The process for retailers and brands to liquidate excess inventory hasn’t changed very much, if at all, and while some retailers were able to build operational infrastructure to service the off-price channels, it continues to be a constant pain point. Last week, Syrup Tech raised $6.3

Product 191

Product Funding Technical Review Equity 191

Berkonomics

JULY 10, 2014

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Email readers, continue here.]

Startup 179

Startup Outsource Development Outsource Venture Capital 179

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. Somehow many first-time founders equate “sales” with something that is beneath them. an investment in your company.

Venture Capital 332

Venture Capital Funding Startup Sales 332

Both Sides of the Table

JANUARY 14, 2014

If you follow the tech media you would be subject to a lot of narrative biases that are completely off base – and this includes the value of email and phone calls. All the data actually suggests with the growth of mobile, inbound sales calls will double from 30 billion to 60 billion in 3 years (source: Kelsey). THE FULL STORY.

Email 339

Email SaaS Venture Capital Google 339

Berkonomics

FEBRUARY 9, 2017

Companies sometime run out of cash in the midst of success, and often find that sources of loans or investment are not freely flowing at the moment of need. There are only a few Uber or AirBnB investments to point to – where the street value of the company may ultimately validate that amount of investment.

Pricing 120

Pricing Invest Email Competition 120

Berkonomics

AUGUST 29, 2013

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are a number of questions a distressed sale brings to mind.

Sales 166

Sales Venture Capital Invest Guide 166

Both Sides of the Table

MARCH 31, 2012

Many MBA programs still cater too much to the needs of large, corporate management jobs or prepare students to enter big consulting companies or investments banks. I got an email recently from my friend & fellow VC, Jeff Bussgang from Flybridge Capital Partners in Boston. My guess is that we are likely in total agreement.

Startup 319

Startup Sales Course Competition 319

Berkonomics

SEPTEMBER 6, 2018

The question to study in your board meeting long before making any offer to purchase a candidate business is: “Would this acquisition add significantly to our enterprise value and attractiveness in an eventual sale?”. After all, we are in business usually for the ultimate return we will someday receive from our investment.

Company 120

Company Companies Acquisition Resource 120

Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. email readers, continue here.] In general, grants are made to individuals, companies, businesses, organizations or institutions that are working toward serving the greater good or a greater cause.

Company 166

Company Companies Writing Education 166

Berkonomics

DECEMBER 24, 2015

you can invest in direct response advertising. Here you make a pitch with a price attached and ask the target to respond immediately to take advantage of the offer. You should not succumb to the investor’s prodding unless there is plenty of money in the bank and an agreed upon time to seek a sale.

Advertising 120

Advertising Statistics Pricing Email 120

socalTECH

JUNE 9, 2010

Last week, Los Angeles-based HauteLook (www.hautelook.com), an online private sales site, scored a major round of funding--raising $31M from Insight Venture Partners. Adam Bernhard: We're a platform that does flash sales. This investment round is a pretty substantial financial investment. Adam, thanks for the time.

Sales 224

Sales Email Startup Sample 224

Berkonomics

AUGUST 10, 2017

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. Email readers, continue here…] In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures.

Venture Capital 243

Venture Capital Product Resource Marketing 243

Berkonomics

MAY 21, 2015

Incremental profits from companies that later sell for three to five times their original value at the time of their investment may be considered great successes for founders but relative failures for VCs, who must hit for the fences with every early stage investment.

Venture Capital 120

Venture Capital Social Media Invest Marketing 120

Both Sides of the Table

MARCH 2, 2011

It’s apropos because there is so much noise these days with email, Twitter, Facebook, blogs, web shows, etc. Let’s be honest – as professional investors we have ALL been to meetings with other groups of investors where we talk about whether there’s a bubble, price creep, etc. I read 95% of my email.

Email 287

Email Blogging Venture Capital Writing 287

Both Sides of the Table

MAY 27, 2013

Understanding where your VC partner sits in their respective fund and where their fund is in the cycle of its investment lifecycle will help you understand your VCs behavior. Email updates frequently. Each of your angels or seed investors may have 20-30 investments. Make your emails actionable. How much is too much?

Tips 365

Tips Email Venture Capital CTO Coach 365

Berkonomics

JANUARY 27, 2010

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first.

Venture Capital 168

Venture Capital Sales Invest Class 168