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. The order of liquidation or payout. and there are those accumulated dividends.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Both Sides of the Table

SEPTEMBER 10, 2021

On the one hand, you’re over paying for every investment and valuations aren’t rational. On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. That used to be called A-round investing. dot-com bonanza.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

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. If you haven’t read Adam Lashinsky’s awesome new book about Apple , you should. And that leads me to today’s post.

Startup 319

Startup Sales Course Competition 319

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. So, the question: load up with more equity and dilution? What about those unicorns? What about those unicorns? Growth brings financial issues.

Pricing 156

Pricing Invest Equity Entrepreneur 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

Both Sides of the Table

SEPTEMBER 18, 2014

About $1 million. Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. Him: But when I raised my first round we didn’t know how to price the company. How will you price the next round? The price is simply the price.

Venture Capital 417

Venture Capital Capital Pricing Doc 417

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. The equity will go toward hiring more talent to join Ghost’s 25-person team.

Product 191

Product Funding Technical Review Equity 191

TechCrunch LA

JUNE 18, 2022

Last week, we talked about layoffs and the Winklevoss rock gods. Things are happening so quickly right now that even seasoned crypto investors seem to be feeling uneasy about this one. Welcome back to Chain Reaction. This week, we’re looking at a new layer of crypto doom and gloom. crash redux. How much worse will things get?

Newsletter 278

Newsletter Platform Capital Marketing 278

Xconomy

OCTOBER 27, 2016

Prices for agricultural commodities such as corn, soy, and wheat are at their lowest levels in years, but investment in agricultural technology has never been better. The increase in dollars flowing to agtech comes despite commodity prices that are down 65 percent from their 2013 peak, the report says.

Venture Capital 40

Venture Capital Pricing Invest Report 40

Startup Professionals Musings

OCTOBER 7, 2022

Here is where projections of cost, pricing, volumes and cash flow are critical. Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction. How much equity ownership are you willing to offer? Are you flexible on the terms of the investment?

Funding 121

Funding Startup Equity Invest 121

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. Investors want to hear about customers with money who have a painful problem that you can solve now.

Invest 108

Invest Startup Slides Equity 108

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. There is a lot to say about retaining control.

Venture Capital 266

Venture Capital Class Invest Equity 266

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D. Perhaps it shouldn’t.

Venture Capital 286

Venture Capital Pricing Technical Review Startup 286

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.

Angel 120

Angel Sales Pricing Equity 120

TechCrunch LA

MAY 25, 2019

Last week, I wrote about an alternative to venture capital called revenue-based financing and before that, I jotted down some notes on one of VCs’ favorite spaces: cannabis tech. Before I tell you about a few other up-and-coming beverage makers, I must beg the question: Does the beverage industry need disrupting? Fundraising.

Startup 223

Startup Venture Capital Newsletter Tips 223

Startup Professionals Musings

JANUARY 4, 2020

Here is where projections of cost, pricing, volumes and cash flow are critical. Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction. How much equity ownership are you willing to offer? Are you flexible on the terms of the investment?

Startup 135

Startup Equity Invest Funding 135

TechCrunch LA

JUNE 10, 2021

We’ve scaled up so massively in investments in our growth and technology, but running on a loss is very odd for us,” he told TechCrunch. “We The company has about 4,000 employees with several hundred in the U.S. They can also do things like initiate refunds, track deliveries and get price-drop notifications. billion valuation.

Los Angeles 266

Los Angeles Funding CIO Marketing 266

Startup Professionals Musings

SEPTEMBER 13, 2022

I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here. The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. Join a startup incubator.

Startup 136

Startup Technical Review Equity Incubator 136

TechCrunch LA

SEPTEMBER 21, 2019

Before that, I wrote about Stripe’s grand plans. A traveler pays Sun Country one fixed price to get them from the bus pick-up point to their final destination. We don’t know much about the company’s plans, but we wouldn’t be too surprised to see the home-sharing decacorn pursue a direct listing.

Services 207

Services Startup Venture Capital Redpoint 207

Startup Professionals Musings

NOVEMBER 4, 2022

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. That’s why investors say they invest in people (bet on the jockey, not the horse), rather than the idea. The industry veteran.

Technical Advisors 123

Technical Advisors Startup Outsource Development High Tech 123

Both Sides of the Table

JUNE 5, 2015

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. The truth is that I’ve been warning about convertible notes since 2010 it was first declared that “convertible notes have won.” So how DOES a VC think about financings at early stages?

Venture Capital 150

Venture Capital Pricing Startup Invest 150

InfoChachkie

JANUARY 21, 2019

Other Supreme apparel sells in the aftermarket for hundreds more than their retail prices, including box logo hoodies which typically sell for between $500 – $1,000. A Veblen good does not adhere to the traditional laws of price and demand. You may think that this item is an anomaly, but it is not.

Demand 160

Demand Pricing Product Equity 160

TechCrunch LA

SEPTEMBER 18, 2019

Lots of firms are now talking about this pretty actively.”. Sieg recently joined us on Equity , TechCrunch’s venture capital podcast, to explain the firm’s “rise of the rest” philosophy. Competition for access to deals in the Bay Area, however, has priced many investors out of the most sought-after rounds.

Venture Capital 211

Venture Capital Funding Seed Funding Activity 211

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Startup 142

Startup Technical Review Equity Entrepreneur 142

Xconomy

NOVEMBER 20, 2019

Drug pricing debates and uncertainty associated with Brexit are the issues most likely to keep biopharmaceutical executives awake at night. Nevertheless, senior figures remain optimistic about the industry’s prospects in 2020. In turn, pricing pressure is also a concern as corporates and investors plan for the year ahead,”.

Pricing 78

Pricing Invest Develop Development 78

Both Sides of the Table

JUNE 22, 2011

I spoke about a lot of things during the keynote. I spoke about how Amazon Web Services deserves far more credit for the last 5 years of innovation than it gets credit for and how I believe they spawned the micro-VC category. I will write more about this in the next 2 weeks. If you are interested the Vimeo is here.

Pricing 309

Pricing Marketing Startup Venture Capital 309

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

Startup Professionals Musings

SEPTEMBER 26, 2015

Investors, on the other hand, look at the money figure, and even the equity, as the easy part. Here is a summary of the key terms to expect on the term sheet, or the contract between the founder and investor: Consideration given for the money invested. This is a loan with an option to convert to equity at a later date.

Demand 105

Demand Startup Equity Invest 105

Startup Professionals Musings

APRIL 4, 2022

I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here. The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts.

Tips 104

Tips Startup Technical Review Equity 104

TechCrunch LA

DECEMBER 8, 2020

With those two funding rounds all equity-based, to buy up property itself and provide $10,000 cash advances to all sellers, Sundae previously also raised a debt fund from high net worth individuals, and it has a “very large” debt facility from Goldman Sachs that it also non-dilutive, Stech said.

Sales 282

Sales Demand San Diego Funding 282

Both Sides of the Table

MAY 23, 2010

The traditional way that this type of financing is offered is what is known as “convertible debt.&# This means that the investment does not have a valuation placed on it. a loan) that is later converted to equity at the time of the next financing. Maybe the market views this as not worth the price you paid?

Startup 290

Startup Funding Venture Capital Pricing 290

Both Sides of the Table

JULY 15, 2010

We started this week’s show with a Q&A session where I answered viewer questions about fund raising and the VC industry. – I spoke about GRP’s recent exit of Ulta in which we returned $320 million to our limited partners. Can you please expand on your post about distributed teams? Great exit. -

Venture Capital 210

Venture Capital Seed Funding Pricing Southern California 210

InfoChachkie

JULY 11, 2011

By combining our equity investment with a tranche of venture debt, the company has avoided a larger equity round, which would have significantly diluted the Founders’ ownership share. Investor Threshold – If possible, avoid accepting more venture debt than your investors can reasonably payoff with an equity infusion.

Equity 235

Equity Startup Invest Funding 235

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

Startup Professionals Musings

DECEMBER 6, 2019

I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here. The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. Join a startup incubator.

Startup 128

Startup Technical Review Equity Incubator 128

Startup Professionals Musings

FEBRUARY 9, 2020

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. That’s why investors say they invest in people (bet on the jockey, not the horse), rather than the idea. The industry veteran.

Technical Advisors 123

Technical Advisors Outsource Development Startup High Tech 123

Both Sides of the Table

MAY 30, 2015

When you do a convertible note with a cap that converts into the next round of funding one of the unintended consequences is that if you’re successful and raise at a larger price than your cap the early angels often get “multiple liquidation preferences” on their dollars in. The early risk is why they get a cheaper price.

Entrepreneur 150

Entrepreneur Pricing Venture Capital Angel 150