Both Sides of the Table

JULY 16, 2010

Lots of discussion these days about the changes in the VC industry. 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.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Both Sides of the Table

JUNE 17, 2017

The most obvious way to explain this is with sales people. If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. Do you imagine eventually raising VC and trying to build a faster growing company?”

Startup 227

Startup Venture Capital Sales Course 227

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

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). Venture, private equity and more: Here we lump a large number investor classes into one.

Venture Capital 266

Venture Capital Class Invest Equity 266

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

MAY 19, 2018

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. So what does a VC do when he or she isn’t ready to say “no” or perhaps might like to talk with you in a year but not now?

Funding 336

Funding Venture Capital Startup Email 336

socalTECH

JULY 19, 2012

Los Angeles investor Baroda Ventures , the venture capital arm of David Bohnett, has re-upped on online fashion and e-commerce site Fab.com , in a big, $105M third round of funding for that site. Baroda has been an investor in Fab since its seed funding back in June of 2010. Bohnett is the founder of Geocities.com.

Funding 178

Funding Seed Funding Commerce Social Network 178

Startup Professionals Musings

DECEMBER 2, 2022

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

Sales Customer Custom Outsource 102

Both Sides of the Table

APRIL 25, 2011

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

Services Venture Capital IP Startup 332

Both Sides of the Table

DECEMBER 27, 2011

The most obvious way to explain this is with sales people. If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. “COGS” represents the amount that each sale costs you.

Startup 418

Startup Venture Capital Sales Technical Review 418

InfoChachkie

FEBRUARY 29, 2016

Two hundred and fifty thousand would have netted my firm more than one billion dollars. As discussed in Why I Passed On Twilio , VC's love to talk about their successes, but seldom publicly acknowledge their mistakes. It is far more detrimental to one’s returns to make investments in companies which fail to return capital.

Venture Capital 100

Venture Capital Email Invest Services 100

Both Sides of the Table

APRIL 16, 2011

It’s easy to think that the wife of a well-known & successful VC ( Fred Wilson ) would have had an easy and storied life of wealth and privilege. That’s why I was so interested in having “ The Gotham Gal &# come on This Week in VC ( video link on YouTube , download iTunes, episode 15) ) and dispel those myths.

Startup 311

Startup Sales Venture Capital Entrepreneur 311

Both Sides of the Table

NOVEMBER 3, 2009

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners. Why do VC’s care about these years?

Web 2.0 334

Web 2.0 Venture Capital Web Technical Review 334

Both Sides of the Table

JUNE 27, 2021

the sale of the company for $1 billion. You need shots on goal as not every one will go in the back of the net. Early-stage venture capital is about extreme winners. It was ~30 days from bankruptcy. So if you truly want to be great at investing you need all the right skills and access AND a diversified portfolio.

Funding 294

Funding Startup Writing Invest 294

socalTECH

DECEMBER 12, 2014

The way we get compensated, is we receive a percent of net sales that flow through the website. If you look at the Internet Retailer Top 1000, which is a list that tracks e-commerce sites by sales volume, you''ll see that Amazon is number #1, and number 1000 does a few million in sales online. Our clients like that a lot.

Commerce 203

Commerce Venture Capital Internet Brands Startup 203

Both Sides of the Table

MAY 20, 2018

Maybe this is reverse “hanging around the rim” where if you keep you VC process going long enough you’ll eventually get to “yes?” These are similar to the pipeline reviews I used to do with sales reps when I was a CEO. She stood in front of the sales executives and shouted at them like she was a high school football coach.

Funding 189

Funding Software Review Entrepreneur Venture Capital 189

Both Sides of the Table

JANUARY 5, 2010

Having street smarts with no inspirational ability to build teams can yield a great small business but will be difficult to scale into a large VC-backed business. So we as VCs search for entrepreneurs/founders who have the whole package or as much of it as possible. In the book they profile how VC worked in the early days (60s / 70s).

Entrepreneur 293

Entrepreneur Startup Venture Capital CTO Hire 293

InfoChachkie

AUGUST 22, 2016

My venture firm, Rincon Venture Partners recently teamed with Jason Lemkin, Founder of SaaStr , to host the first SaaStrX event. Ara went on to note that ServiceTitan has been experiencing negative churn, netting 120% annual revenue growth from existing customers.

Customer 100

Customer Custom Cornerstone OnDemand Metrics 100

Both Sides of the Table

MARCH 22, 2012

Your entrée to sales meetings. Helping with a Sales Lead. After all, if your VCs won’t help you get access to potential buyers or business development partners – what will they do? But the reality is that unfiltered intros just create work for the VC. They are your route to angel money. I do this often.

Email 359

Email Venture Capital Startup Technical Review 359

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

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). Venture capital comes with a cost, and there are no bargains for the company when taking such an investment.

Venture Capital 174

Venture Capital Invest Class Entrepreneur 174

Both Sides of the Table

JULY 19, 2011

And yes, VC’s, too. That said, there are times where you need to cast a wider net. Negotiate directly with your VC or acquirer with lawyers present in the room. VCs : VCs are often on your side and usually act in an ethical manner. What might the VC do against your interest? Recruiters. You name it.

Venture Capital 319

Venture Capital Pricing Startup Outsource 319

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. A partner at Palomar Ventures declined to comment, saying that the firm has a "hard and fast" policy of not commenting on matters related to LPs.

Palomar 100

Palomar .Net Venture Capital Equity 100

socalTECH

JULY 7, 2010

Demand Media / Richard Rosenblatt / Los Angeles - Rosenblatt's last big win: MySpace, where he was Chairman, brokering its sale to News Corp. com, and was CEO of Vivendi Universal Net USA. Tags: entrepreneur startup venture capital investment repeat. Less known--a healthy domain name registration business.

Southern California 228

Southern California Entrepreneur SoCal Mahalo 228

InfoChachkie

FEBRUARY 17, 2015

In order to close the sale, the bar owner “threw in” four season tickets to the Green Bay Packers football season. Box Office Mojo estimates that since 1980, the films have netted over $10 million in theatrical re-releases and at least that much in collective VHS, DVD and Blu-ray sales.

Miramar 100

Miramar .Net Sales Entrepreneur 100

Tech Coast Venture Network

APRIL 22, 2010

Once you have some skin in the game, if you personally can’t get to some level of revenues in the business, or at a minimum, pre-sales or letters of intent, then on to round two – asking family and friends for help. In order to qualify, you have to have high net worth, a strong credit score and significant skin in the game.

Startup 124

Startup Tech Coast Angels TCVN Incubator 124

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. Run A Sales Process – Establishing an auction was the least attractive option, even though this approach might have driven up the purchase price. VC Funding Alternative. We were not rude nor indignant.

Company 100

Company Companies Santa Barbara Pricing 100

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

There are dozens of sources to help you construct your business model, and a good example is a recent 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 97

Sales Customer Custom Outsource 97

Startup Professionals Musings

JANUARY 29, 2011

There are dozens of sources to help you construct your business model, and a good example is a recent 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 98

Sales Customer Custom Outsource 98

Startup Professionals Musings

JUNE 25, 2012

If you don't know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. An investment from a venture capital firm is usually expensive, in equity and control.

Technical Review 103

Technical Review Equity Incubator Venture Capital 103

Tech Zulu Event

JULY 16, 2012

.” Founded in 2007 by Ravishanker and a small group of computer science graduates from the University of California, Irvine, the University of Southern California and Harvard University, CallFire has achieved just under $10 million in sales, is profitable and has built that substantial user base–all without venture funding.

Venture Capital 89

Venture Capital Cloud Computing Class Education 89

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

Startup Professionals Musings

MARCH 16, 2011

If you don't know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. An investment from a venture capital firm is usually expensive, in equity and control.

Startup 93

Startup Technical Review Equity Incubator 93

Tech Coast Venture Network

MARCH 9, 2011

Last year, venture capitalists and angels who co-invested with them placed $7 billion into seed and early-stage deals, an 11 percent increase from 2009, according to the most recent PricewaterhouseCoopers/National Venture Capital Association MoneyTree report. million in angel and venture capital.

Tips 100

Tips Capital Tech Coast Angels Screening 100

InfoChachkie

JULY 11, 2011

RedMojo’s CEO orchestrated the venture debt round masterfully. Equity funding would have diluted the Founders while simultaneously complicating the company’s equity structure, thus making a potential sale of the company more cumbersome. The sale resulted in a nice return for the Founders, employees and creditors.

Equity 235

Equity Startup Invest Funding 235

Both Sides of the Table

JANUARY 10, 2010

It was recommended to me by my friend, Net Jacobsson , who was trying to do some basic Life Hacking. But Net had told me that he picked up some valuable lessons from the book, so I thought, “WTF? Obviously if you’re in a customer support role, a sales role or a customer service industry this can be impossible.

Startup 295

Startup Email Technical Review Course 295