Berkonomics

JANUARY 20, 2022

Some relatives believe that a family bond is an insurance policy, and that all investments or notes will always be repaid, no matter what the circumstance. Consider whether the family member being asked to invest has the capacity to walk away “happily” from a lost cause. The problem, of course, comes if the business fails.

Startup 317

Startup Entrepreneur Invest Course 317

Berkonomics

JANUARY 6, 2022

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. No-one complains if the sales price is ten times the investment since there is plenty to go around.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Berkonomics

NOVEMBER 23, 2023

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

Equity 156

Equity Class Pricing Sales 156

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Using this technique with a supplier And how about a product purchase where you cannot come to a successfully negotiated price with your supplier?

Pricing 156

Pricing Sales Examples Tool 156

Berkonomics

MAY 31, 2018

Feel good about the former employee’s success. Tom almost always had ideas to contribute, particularly about marketing programs and opportunities. Email readers, continue here…] One day Tom came to me and said, “I want to transfer to marketing. Five years later, I received an email from Tom. Keep me informed.”

Email 226

Email Coach Invest Equity 226

Berkonomics

MARCH 21, 2019

We’ll cover what information you’ll expect to provide, your range of expected values and amounts of investment to expect. Careful about “hockey stick” forecasts. Email readers, continue here…] Most VC’s look for a 10x opportunity – that is – a ten times increase in the valuation from investment to liquidity event.

Equity 159

Equity Examples Startup Invest 159

TechCrunch LA

JULY 19, 2022

In terms of growth, it took Ghost about 90 days to reach its first $1 million in gross merchandise volume and then 180 dates to get to its first $1 million GMV day, Kaplan said. Ghost itself closed on a Series A equity round of $13 million, along with $7 million in debt, in June. That’s our vision.”. Syrup Tech bags $6.3M

Product 191

Product Funding Technical Review Equity 191

Berkonomics

MAY 13, 2021

important point of that book, which was written to prompt discussion between entrepreneurs, professional managers, and their boards of directors about issues that could unite them or strain the relationships between them. Relationships are often as valuable as an investment. How about context as a basis for decisions about growth?

Resource 156

Resource Coach Activity Invest 156

TechCrunch LA

JANUARY 29, 2020

Kleiner Perkins , one of the most storied franchises in venture capital, has already invested much of the $600 million it raised last year and is now going back out to the market to raise its 19th fund, according to multiple sources. Speaking onstage at the Upfront Summit, an event at the Rose Bowl in Pasadena, Calif.

IBM 164

IBM IBM Venture Capital Invest 164

Both Sides of the Table

MAY 19, 2018

the most counter-intuitive fund-raising advice you’ll ever get I’m about to offer you some fund-raising advice that flies directly in the face of what most conventional wisdom will tell you. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.” It doesn’t.

Funding 336

Funding Venture Capital Startup Email 336

Berkonomics

DECEMBER 7, 2017

One great source for coaches is among fellow members of a CEO roundtable organization, Young Presidents Organization or similar association where you are comfortable with the coach candidate and know something about his or her style. Email readers, continue here…] How do you pay a coach?

Coach 243

Coach Organization Resource IBM 243

Berkonomics

JUNE 8, 2017

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. There is a lot to say about retaining control. It is most often a win-win for both you and the strategic partner.

Venture Capital 266

Venture Capital Class Invest Equity 266

Tech Zulu Event

APRIL 1, 2014

Visions pan of endless cold emails and long days attending meetups and pitch nights while your operations/tech team grind away. 2013 was a huge year for startup investing to say the least, and with how things have been shaping up in Q1 of 2014, things are going to get a whole lot crazier. From Finance to Crowd-Investing.

Invest 100

Invest Startup Technical Review Software Review 100

Berkonomics

NOVEMBER 21, 2019

But that is a number in a vacuum without at least two other measures: return on investment (ROI) and percentage of net profit to revenue. But some of our own small businesses have even higher percentages of return on investment and percentage of net to gross. How about companies formed to profit and give to charity?

Company 156

Company Companies .Net Google 156

Both Sides of the Table

SEPTEMBER 12, 2010

I recently got an email from a friend who had been approached by a well known VC. He sent me an email asking whether the approach was real and whether he should take it seriously. Here is the email he received (reprinted without names with his permission). No reason not to call him but I wouldn’t get too excited about it.

Venture Capital 294

Venture Capital Entrepreneur Email Equity 294

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. All you need is a blog, Twitter, email, some business card stock, and a little creativity. Don’t think about the exit. Marty Zwilling.

Equity 96

Equity Startup Summary Tips 96

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. But aside from choosing the time of day to focus on signal vs. noise, Brad’s post got me thinking about another question – what is signal and what is noise? They could chat about it with their peers or mentors.

Email 287

Email Blogging Venture Capital Writing 287

Both Sides of the Table

JUNE 12, 2013

I see it on email even more. But less as a complaint and more as advice to younger networkers, the more you invest in relationships the more you will get when you need. I was thinking about this yesterday because my assistant Tasha posted a link on Facebook to Paul C. Think about it – who knows angels the best?

Venture Capital 407

Venture Capital Press GRP Partners Blogging 407

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

Both Sides of the Table

MAY 13, 2018

If you truly believe that you, your company and your products are exceptional and your company will be valuable then you’re actually doing them a FAVOR by helping them invest in your startup. If you don’t believe in your bones that you’re amazing then it’s no wonder you don’t want to sell them on making the investment.”

Venture Capital 332

Venture Capital Funding Startup Sales 332

Berkonomics

OCTOBER 1, 2015

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. No-one complains if the sales price is ten times the investment, since there is plenty to go around.

Angel 120

Angel Sales Pricing Equity 120

Both Sides of the Table

SEPTEMBER 17, 2011

I recently wrote a post about why I didn’t think early-stage startups should have COOs. I’ve had several COOs at companies in which I’ve invested. I’d say about 80% of the experienced entrepreneurs & VCs I know privately agreed with me. . Dilute your cash, equity or both. What will it do?

Startup 292

Startup CTO Hire Sales Email 292

Berkonomics

OCTOBER 30, 2014

It is worth revisiting the most important point of that book, which was written to prompt discussion between entrepreneurs, professional managers and their boards of directors about issues that could unite them or strain the relationships between them. There are five types of resources a great board can add to a company.

Resource 237

Resource Product Help Equity 237

Berkonomics

SEPTEMBER 28, 2017

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Equity is divided between the founders and the business begun. An option plan should carve out an addition of about 15% of the “fully diluted” shares. How about the price per share?

Equity 256

Equity Class Pricing Sales 256

Berkonomics

JANUARY 26, 2017

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Email readers, continue here…] There are so many ways to satisfy a seller, sometimes a seller’s ego, by making a price seem higher than the reality of the purchase.

Pricing 120

Pricing Sales Tool Equity 120

Berkonomics

AUGUST 20, 2015

The company provides identity theft protection, and took a large round from a private equity firm, which returned about eight times investment in cash to the early angels, and still left them with all their stock in the deal, an outstanding result. Email readers, continue here…] Not so fast.

Equity 120

Equity Email Sales Invest 120

Berkonomics

MAY 7, 2011

Tom almost always had ideas to contribute, particularly about marketing programs and opportunities. Email readers continue here.] Five years later, I received an email from Tom. 31 million return from $100 thousand investment, or 310 to1. $31 million return from $100 thousand investment, or 310 to1.

Help 166

Help Email Coach Invest 166

InfoChachkie

MAY 6, 2013

This is due to a fundamental disconnect between the increased activity of high-volume seed investors (that fill out lots of Seed rounds) and the relatively small number of Series A investors, who only make 1 or 2 investments, per partner, per year.". There is a similar Darwinian aspect to venture capital investing.

Entrepreneur 246

Entrepreneur Venture Capital Technical Review Capital 246

TechCrunch LA

FEBRUARY 20, 2019

Capitalism is fundamentally about timing, since market competition is about finding opportunities before others. When should a VC invest? Every single one of our professional decisions is about timing, and yet, we do so little to practice and perfect it. Start writing down predictions about people, companies, and markets.

Venture Capital 202

Venture Capital Startup Technical Review Invest 202

Both Sides of the Table

OCTOBER 11, 2009

They are usually offered around 0.25% of the companies equity in exchange for their role and I’ve seen many companies hand out a total of 2% to advisers. My main advice to you if you’re considering it is don’t waste much equity on it. At a minimum their angel investments will likely take precedence.

Startup 306

Startup Venture Capital Equity Technical Review 306

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Angel investment groups or funds. Friends and family investors. How many angel groups are there?

Equity 156

Equity Technical Review Class Organization 156

Berkonomics

OCTOBER 15, 2015

Some relatives believe that a family bond is an insurance policy, and that all investments or notes will always be repaid, no matter what the circumstance. Consider whether the family member being asked to invest has the capacity to walk away “happily” from a lost cause.

Startup 120

Startup Invest Course Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 24, 2011

Here are the right questions to ask yourself, in the right order, before asking others about money: Do you understand and aspire to entrepreneur lifestyle? Consider the non-cash alternatives, like offering equity instead of cash and bartering for services. How much money do you really need? Each of these has a cost in time an effort.

Entrepreneur 103

Entrepreneur Invest Training Ideas 103

socalTECH

JUNE 21, 2013

Instead of equity, the company is aimed at profiting profitable small businesses with business debt funding from investors, to help those businesses grow and get to the next level. Why did you decide to focus on debt, not equity? Enough people said yes, and I thought about building the company. What is Dealstruck?

Startup 247

Startup Software Review Entrepreneur Equity 247

TechCrunch LA

APRIL 6, 2020

Please reach out and email me at kirsten.korosec@techcrunch.com to share thoughts, opinions or tips or send a direct message to @kirstenkorosec. Noam Ohana, who heads up Exor Seeds, the holding company’s early-stage investment arm, will join Via’s board. Other deals: Qcraft.ai I have edited these for length and clarity.

Layoffs 136

Layoffs Startup Newsletter Santa Monica 136

InfoChachkie

FEBRUARY 25, 2013

Despite the proliferation of entrepreneurial courses within Business Administration programs, business schools are essentially vocational training grounds for consultants and investment bankers. I promise I will never tweet about MBA hating or that killer burrito I just ate. Share and Enjoy. Share and Enjoy.

Entrepreneur 279

Entrepreneur Technical Review Case Study Class 279

Startup Professionals Musings

OCTOBER 16, 2020

Think first about where you have a natural advantage , or a unique insight or critical purpose. Just because you want to start a business doesn’t mean you are entitled to outside equity, loans, or crowdfunding. By spending only within your means, and re-investing the money you make, you will more likely enjoy success.

Customer 125

Customer Custom Tool Writing 125