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This Week in VC: Michael Montgomery (President, Montgomery & Co.)

Both Sides of the Table

Michael is a very accomplished corporate executive in his own right having run Sega Gameworks and helped IPO EuroDisney as well as having been on the founding team of DreamWorks SKG (where he helped them raise their first $900 million in equity). They can also help raise larger rounds of capital and often at higher prices. TechCrunch.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. “How much is that software really worth? We were building a VC backed software business so I had to focus on the product business.

Services 332
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Startup 383
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What Are We Talking About When We Talk Valuation?

Tech Zulu Event

Business valuations = the price of the company. Do you see the overlap with the factors that come into play for equity valuations? Recent equity sales i.e., comparables. And there are public market valuations for where stocks trade now and predictions for what they’ll be worth in the future. And then there are 409A valuations.

IP 40
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A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

It has the dual technology patrons and yet the consistent story I get is that they’re not actively out embracing the startup community, helping local successes emerge, getting comfortable with the symbiotic benefits of some employees going to startups that innovate at a different pace and then buying up local teams, talent & IP.

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Top 120 Startup Posts for 2010

SoCal CTO

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

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