article thumbnail

Don’t get hung up on early stage valuation.

Berkonomics

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.”. Lessons founders learned.

article thumbnail

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

I came across this blog post about getting a computer science degree as the best degree for getting into venture capital or working at a VC-backed start up. I just completed an exercise where I went out to hire a new associate for my VC firm, GRP Partners. Sales is the lifeblood of every organization.

Startup 337
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Don’t get hung up on valuation.

Berkonomics

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. Why fight about valuation, or disappoint the founder at the outset?

Startup 179
article thumbnail

Some Quick Thoughts on Exits for Technology Startups

Both Sides of the Table

The median VC exit price for deals is $70 million (FLAG Capital via Bryce.VC). Bimodal returns are a fallacy, many great VC funds are built on the power law curve. They say the same about VC. Outsourcing can be cheap. Often they are “soft landings” for PR purposes. So entry price matters a lot.

Startup 323
article thumbnail

10 Business Model Components Required In Every Plan

Startup Professionals Musings

There are dozens of sources to help you construct your business model, and a good example is a classic book by venture capital investor Elizabeth Edwards, simply named “ Startup ,” which is really designed as a handbook for launching a company for less. Sales/Marketing. Be specific on sales channels and marketing initiatives.

Sales 102
article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. Why Shouldn’t Most Services Businesses Raise VC? It may be the right answer for you.

Services 332
article thumbnail

PathCentral Gets $10M More

socalTECH

The round was led by Okapi Venture Capital, Arboretum Ventures, and Baird Venture Partners. The firm said the funding will go towards its web-based laboratory information systems, a field sales force, and for its cancer diagnostics laboratory.

Outsource 124