Both Sides of the Table

MAY 20, 2018

Every entrepreneur wants to hear “yes” during the fund-raising process but I would argue that being too risk averse and not pushing hard enough and be willing to hear a “no” is what holds back many people from “yes.” These are similar to the pipeline reviews I used to do with sales reps when I was a CEO. Do they have influence?

Funding 189

Funding Software Review Entrepreneur Venture Capital 189

TechCrunch LA

DECEMBER 8, 2020

Today, a startup that is doing this in the specific area of distressed property is announcing a round of growth funding to ramp up its team and expand its business. The funding is being led by QED Investors; Founders Fund, Susa Ventures, Navitas Capital, and Prudence Holdings also participated.

Sales 282

Sales Demand San Diego Funding 282

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). For you who fit that description, nice work. There is a lot to say about retaining control. There is a lot to say about retaining control.

Venture Capital 266

Venture Capital Class Invest Equity 266

Both Sides of the Table

SEPTEMBER 28, 2014

Gross Burn vs. Net Burn. 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 Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383

Startup Company Companies .Net 383

Startup Professionals Musings

DECEMBER 2, 2022

I expect that should seem intuitive to all entrepreneurs, but every investor I know has many stories about startup funding requests with major business model elements missing. A target market is the group of customers that the startup plans to attract through marketing and sales their product or service. Sales/Marketing.

Sales 102

Sales Customer Custom Outsource 102

TechCrunch LA

OCTOBER 5, 2020

Today, one of the companies that is supplying produce and other items both to consumers and other services that are in turn selling food and groceries to them, is announcing a new round of funding as it gears up to take its next step, an IPO. Source tell us it is now between $400 million and $500 million.

Technical Review 343

Technical Review Startup Marketing San Diego 343

Both Sides of the Table

JUNE 19, 2017

That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management. The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn.

Startup 212

Startup Venture Capital .Net Capital 212

Both Sides of the Table

DECEMBER 27, 2011

To grow faster businesses need resources in today’s financial period to fund growth that may not come for 6 months to a year. The most obvious way to explain this is with sales people. You may have leverage when you DO need to fund raise. Just be careful that it doesn’t come at the expense of investments in growth.

Startup 418

Startup Venture Capital Sales Technical Review 418

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. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Venture Capital 243

Venture Capital Product Resource Marketing 243

Both Sides of the Table

JUNE 17, 2017

To grow faster businesses need resources in today to fund growth that may not come for 6 months to a year. The most obvious way to explain this is with sales people. They don’t want high burn rates but they will never fund slow growth. COGS” represents the amount that each sale costs you.

Startup 227

Startup Venture Capital Sales Course 227

Startup Professionals Musings

NOVEMBER 26, 2012

Two founders have spent $200K of personal and family funds over a one year period to start the company, get a prototype site up and running, and have already generated some “buzz” in the Internet community. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Startup 108

Startup Invest Patents Outsource Development 108

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. So the people who invest in VC funds have two problems.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to 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 174

Venture Capital Invest Class Entrepreneur 174

Startup Professionals Musings

SEPTEMBER 30, 2011

Two founders have spent $200K of personal and family funds over a one year period to start the company, get a prototype site up and running, and have already generated some “buzz” in the Internet community. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Funding 98

Funding Startup Patents Outsource Development 98

InfoChachkie

JULY 11, 2011

In the past, venture debt was often viewed as a funding vehicle of last resort. The nature of the company’s business model requires it to fund certain costs before it is paid by its customers. Thus, even though the company is cash flow positive, its growth is constrained by the amount of payables it can fund. welcome back.

Equity 235

Equity Startup Invest Funding 235

socalTECH

APRIL 23, 2009

Camarillo-based Power-One , a developer of power supplies and related products, said late Thursady that the firm has agreed to a $60M investment from investment firm Silver Lake Sumeru. The firm said it will use the funding to restructure its debt, plus for working capital and strategic initiatives.

Silver Lake 100

Silver Lake .Net Equity Invest 100

socalTECH

DECEMBER 4, 2008

CalPERS, the California pension fund which is a major limited partner in venture capital funds here, apparently sold its stake in Palomar Ventures III, L.P. CalPERS has been selling funds on the secondary market as it seeks to pare down its holdings. sometime earlier this year.

Palomar 100

Palomar .Net Venture Capital Equity 100

InfoChachkie

DECEMBER 7, 2015

There’s no question that many VCs (especially those who manage large funds), are underworked and overpaid. Even if their fund fails, they will receive a hefty salary during its ten year life, although they will likely be unsuccessful if they attempt to raise a subsequent fund. My Experiences.

Venture Capital 100

Venture Capital Capital .Net Entrepreneur 100

InfoChachkie

JULY 28, 2015

My House Is Not For Sale. Our response was that there was no “price” as our company was not for sale. We boiled our alternatives down to the following: IPO – To bolster our negotiating position, I engaged an investment bank to explore the public capital markets. VC Funding Alternative. We were not rude nor indignant.

Company 100

Company Companies Santa Barbara Pricing 100

Startup Professionals Musings

MARCH 1, 2010

For example, with any outside investment, you give up some ownership and control, and with bootstrapping you growth curve will likely be longer and more organic. Self-funding from your savings is the preferred source of cash for your startup – if you have it. Of course, there are pros and cons to each of these. Angel investors.

Funding 59

Funding Startup Technical Review Equity 59

Tech Zulu Event

SEPTEMBER 11, 2013

Senate on May 6 passed the third version of Senate Bill 743, otherwise known as the Marketplace Fairness Act, which requires consumers to pay sales tax on all Internet purchases. Initially, it affects reward-based crowdfunding because the moment anyone takes money in exchange for an item, the transaction becomes subject to sales tax.

Sales 102

Sales Course .Net Capital 102

Tech Coast Venture Network

APRIL 22, 2010

Virgina Lorimor There are several options for financing a start-up business that tend to follow a natural course in a business’ development: Personal Investment. In order to qualify, you have to have high net worth, a strong credit score and significant skin in the game. This is where all entrepreneurs have to start.

Startup 124

Startup Tech Coast Angels TCVN Incubator 124

Startup Professionals Musings

JUNE 25, 2012

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Self-funding is the preferred source of cash for your startup – if you can do it. These resources would likely include office space, consulting, and even a cash investment.

Technical Review 103

Technical Review Equity Incubator Venture Capital 103

Berkonomics

MARCH 30, 2010

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

Venture Capital 212

Venture Capital Product Resource Marketing 212

Startup Professionals Musings

AUGUST 1, 2013

The sad truth is that cash flow surprises kill many startups, even though they should have been adequately funded to survive. Seasonal sales fluctuations eat cash. Fluctuating sales means more inventory is required to cover the ups and downs. Sales volumes are still ramping up while marketing expenses are at max.

Startup 114

Startup Sales Layoffs Slides 114

Startup Professionals Musings

NOVEMBER 3, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Despite all the focus you hear on external investors, over 90% of startups today are self-funded. Despite all the focus you hear on external investors, over 90% of startups today are self-funded.

Organization 111

Organization Startup Summary Entrepreneur 111

InfoChachkie

FEBRUARY 29, 2016

Too bad, as the initial funding round has increased over 4,000 times in value, making a $250,000 investment worth more than $1,100,000,000. Two hundred and fifty thousand would have netted my firm more than one billion dollars. However, passing on a killer investment is not the worst error an investor can make.

Venture Capital 100

Venture Capital Email Invest Services 100

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. sold to Disney for $670 million and since our first investment was at < $10 million valuation we did quite well. Maker Studios?—?sold

Venture Capital 363

Venture Capital Capital Funding Startup 363

InfoChachkie

OCTOBER 27, 2010

The startup was so nascent that the sale would have been considered a short-term gain for tax purposes, which would have significantly reduced the Founders’ proceeds, making their small fortune even smaller. Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer. To Flip Or Not To Flip.

Entrepreneur 124

Entrepreneur Acquisition Pricing .Net 124

InfoChachkie

OCTOBER 27, 2010

The startup was so nascent that the sale would have been considered a short-term gain for tax purposes, which would have significantly reduced the Founders’ proceeds, making their small fortune even smaller. Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer. To Flip Or Not To Flip.

Entrepreneur 124

Entrepreneur Venture Capital Acquisition Pricing 124

Startup Professionals Musings

MAY 14, 2012

I expect that should seem intuitive to all entrepreneurs, but every investor I know has many stories about startup funding requests with major business model elements missing. A target market is the group of customers that the startup plans to attract through marketing and sales their product or service. Sales/Marketing.

Sales 97

Sales Customer Custom Outsource 97

Startup Professionals Musings

MARCH 16, 2011

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Self-funding is the preferred source of cash for your startup – if you can do it. These resources would likely include office space, consulting, and even a cash investment.

Startup 93

Startup Technical Review Equity Incubator 93

socalTECH

MARCH 3, 2011

How is the company funded and backed? David Aronchick: When we first got started, although we had a number of connection through Fouad, I worked with my network in Los Angeles, and my network in Seattle, and we landed an angel investment split between both those Los Angeles and Seattle investors. Was Fouad with Redpoint at the time?

Redpoint 201

Redpoint Startup Content .Net 201

Startup Professionals Musings

JANUARY 17, 2016

Seasonal sales fluctuations eat cash. Fluctuating sales means more inventory is required to cover the ups and downs. Sales volumes are still ramping up while marketing expenses are at max. These are “up front” costs that can’t wait the four or five months before the sales and revenue catch up.

Startup 64

Startup Sales Layoffs Slides 64

Startup Professionals Musings

JANUARY 29, 2011

I expect that should seem intuitive to all entrepreneurs, but every investor I know has many stories about startup funding requests with major business model elements missing. A target market is the group of customers that the startup plans to attract through marketing and sales their product or service. Sales/Marketing.

Sales 98

Sales Customer Custom Outsource 98

Startup Professionals Musings

OCTOBER 12, 2010

You can also use this space to keep track of innovators (R&D personnel) and rainmakers (sales & marketing personnel). Customers: A company’s only sustainable source of cash is sales, so you need to keep track of your business development efforts. Detail isn’t important; tracking your progress is. His website is [link].

.Net 89

.Net Metrics Competition Template 89

Startup Professionals Musings

FEBRUARY 13, 2011

Here are some basic principles: Angels invest in people, more often than they invest in ideas. They probably won’t respond well to high pressure sales tactics, information overload, or bribes. Angels like to “touch and feel” their investments, so they are generally only interested in local opportunities.

Angel 102

Angel Keiretsu Organization Template 102