Learn how to value a startup with negative EBITDA a startup valuation tool that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
Raise money without giving up a piece of your company
Having been in the VC business for 22 years now, we have had the misfortune of living through at least two major downturns. While each has its own unique characteristics, there are a few lessons that may be relevant in responding to the latest crisis.
“If you’re starting a business and you take out a loan, you’re a moron,” said firebrand entrepreneur Mark Cuban in an interview with Bloomberg.
Crypto VCs scaled down funding significantly in 2022 due to the macro uncertainty and systemic risks such as Luna's collpase and the recent FTX debacle.
We're living in crazy times. Coronavirus, lockdowns, recession and riots. It's enough to make even the most seasoned investor wonder what to do next. Not to mention what it all does to an average person.
According to Paul A. Gompers and Anna Kovner’s research, serial entrepreneurs are the key driving forces in the modern business world. Those who succeeded once have significantly higher chances of succeeding in their next venture by 30% when compared to the first-timers. That makes the past performance of an entrepreneur is a strong indicator of a future success.[1]
The crises of 2022, which came in the form of geopolitical instability, economic recession, and inflation, have taken a toll on the venture capital investment.
Bitcoin was explicitly called “digital gold” back in 2011, and a 2010 InfoWorld article says:
New York, NY, (December 14, 2020) – Aves Lair, a New York-based venture capital and frontier technology accelerator, announced today the debut of three innovative startups in its Winter 2020 cohort.
Pecan.ai has just come out of stealth, raising an $11M Series A, to enable business analysts to build machine learning models automatically. Dell Capital led the round, joined by S capital and bringing the total funding of the company to $15M.
More than a decade ago, Wired editor Kevin Kelly wrote an essay called “1,000 True Fans,” predicting that the internet would allow large swaths of people to make a living off their creations, whether an artist, musician, author, or entrepreneur. Rather than pursuing widespread celebrity, he argued, creators only needed to engage a modest base of “true fans”—those who will “buy anything you produce”—to the tune of $100 per fan, per year (for a total annual income of $100,000). By embracing online networks, he believed creators could bypass traditional gatekeepers and middlemen, get paid directly by a smaller base of fans, and live comfortably off the spoils.
Creators want a direct relationship with their own users, which is against the platforms’ DNA. E.g. FB restricts ability for large group admins to message members. Agree that platforms adding in direct monetization features is a big risk though to new startups in the Passion Economy. Here’s some tactics for startups to hedge against incumbents:
All startups hunt for capital, and in order to attract it from investors or funds they need, first of all, to contact them.
If you're a software engineer looking to become a founder, consider hardware. There's a shift coming.
I managed a fund that gave no money, took no equity, and had an exit. Here's that story.
I like this article by Sam Lessin on the future of social, but think there’s a big omission. Namely, one of the major opportunities in social is to first focus on helping creators monetize and own their audiences, then layering in social elements on top.
With further simplification of access to the VC market, people will start massively investing in new technologies and shape the image of tomorrow.
With the boom in technology, tech startups are booming all over the world, especially in the Asian region. In recent years, it has been noticed that startups are growing the track record of success stories in the business world.
Generative AI refers to the use of machine learning to create new content. It has the potential to revolutionize industries
The European Tech Champions Initiative (ETCI) aims to fend off the threat of non-European investors acquiring such businesses as they become more established.
My name is Eran Elhanani, and I’m the Co-Founder of BullPerks, a decentralized VC and multichain launchpad, currently ranking as the #2 IDO investment platform.
Naming your startup can be a tricky and time-consuming process. This article breaks down some tips and stories from VC Partners and CEOs to get you started.
The value of a cryptocurrency can be influenced by various factors, including news about the cryptocurrency and its underlying technology, regulations etc
If you somehow navigate the mysterious path to reach the Notion HQ at 1:00 PM PST on a Friday, you would find an empty office with two golden poodles and a mutt running around. The entire team would not be far though, just shy of a mile away sitting at Barzotto and eating Extra-Long Noodles pasta over a glass of sparkling white wine. Add some soft serve gelato to that. This is just one of the many idiosyncrasies you would find in this 20 member start-up that has captured over a million users with their sleek product.
VC money is spilling out onto the streets, and despite millions of dollars of investment tech companies still neglect their security.
When raising capital, not all startups have options—they only receive one term sheet from one interested investor. And that should be celebrated. However, some startups are “hot” enough to attract multiple VCs.
А useful guide for founders on how to prepare a pitch deck and how we look on it as a VC investor.
BBVA launched BBVA Spark in July 2022, its comprehensive financial services proposal for innovative companies in their various stages of growth.
Venture Capital is an institutional investment made into early-stage startup companies. If you want the investment, you need to work on a growth plan.
From stone tools to the invention of the wheel to steam engines to the internet, technology has come a long way, it has overtaken nearly all major aspects of our lives. Just take this article for example, you wouldn’t be reading it if it wasn’t for technology.
Once you’ve obtained the capital required to launch your startup, it’s time to look at fulfilling your technical needs. Do you have a secure web server? An IT security specialist? A reliable computer setup? These are all important, but there’s more.
Unshackled Ventures founding partner Nitin Pachisia explains three ways he built a strong network during his fundraising journey.
Hi there! My name is Vitalii Berdichevskyi, I’m a Product Manager. In this essay of the series I will share with you List of top VC's invested in HR Tech. Previous parts of the series you can find below:
[This essay was co-authored by my colleague D’Arcy Coolican (@dcoolican) and me. We also compiled a list of metrics to measure your network effects.]
Wise, the leading embedded banking FinTech, that offers business banking via partnerships, announced today that it has closed a $12M Series A.
In this post we’ll be looking at how crypto investment fund Iconium is leading the charge for development of Web3 infrastructure.
Venture capitalists get pitched hundreds of times a year. And, even though countless articles have been written on the topic of how to present a startup to professional investors, entrepreneurs consistently fail to address check points needed by the investor to come to a decision.
The Hedge Fundization of VC
Most data from government and financial institutions is still siloed. Public blockchains may be used by anyone and are permissionless. But how far off are we?
Is traction enough to raise funding for a Startup or do you need more than that? Here's how we raised $128,700 at Alpe.
Seed round is being led by NFX with additional participation from other top SF Angels
The pandemic and lockdowns have proven to the world the simple truth that we are social beings.
Saying “it’s not fair” won’t get you there. To be the best, you have to beat everyone.
Clayton Christensen's disruption theory and what it means for the Passion Economy
Thread: The best consumer marketplaces end up supply-constrained, because they tap into an incredible amount of demand. For instance, Airbnb, Lyft, and Uber have seemingly infinite demand since the product/market fit is so strong–and this demand puts pressure on supply.
After more than 60 meetings at a major tech conference in Dubai Gitex Global 2022, I figured out what helps projects stand out and get stuck in the memory.
Fourth annual report reveals continued market maturation; $34.5 billion invested in southeastern startups since 2015
When you are searching for the right venture capital fund, there are a lot of factors that can go into deciding which fund to choose.
Transcript of COO Linh Dao Smooke's talk on how Hacker Noon leans on their community as a fundraising mechanism as opposed to traditional VCs.
Soothsayer Sequoia Capital warned its portfolio companies in a memo—how can startups stay healthy?
Passion Economy platforms are rooted in a value proposition that deeply appeals to workers—they lower the barriers to earning income
The top-earning writer on the paid newsletter platform Substack earns more than $500,000 a year from reader subscriptions. The top content creator on Podia, a platform for video courses and digital memberships, makes more than $100,000 a month. And teachers across the US are bringing in thousands of dollars a month teaching live, virtual classes on Outschool and Juni Learning.
[I co-wrote this essay with my a16z partner Andrew Chen. We’re excited about the future of marketplaces and the service economy. Hope you enjoy this glimpse into our thinking, and let us know if you have any feedback!]
How new models of e-commerce can enable the Passion Economy
We got accepted into YC on the 9th of December 2019. Originally, we wanted to raise a pre-seed round before starting YC on the 6th of January. But at the same time, we didn’t want to incorporate the company in 2019 so we wouldn’t have to deal with the taxes for 2019. Call us lazy! One would say lazy is not bad, as long as it’s smart lazy!
I Studied Entrepreneurship in 4 Countries. Here's How To Fix it in Europe.
The importance of power users
Power users drive some of the most successful companies — people who love their product, are highly engaged, and contribute a ton of value to the network. In ecommerce marketplaces it’s power sellers, in ridesharing platforms it’s power riders, and in social networks it’s influencers.
[This post was co-authored by me and my colleague at a16z, D’Arcy Coolican (@dcoolican). This is a companion to our other essay exploring the dynamics of network effects. If you’re an operator, we’d love to hear your thoughts on how you measure your own product’s network effects!]
What can founders / operators do when it comes to navigating the complexities that come with the territory in regulated industries? Here are some opportunities.
This article summarizes DIDs and VCs' fundamental principles, describes the use in the real world, and provides bonus materials for tech-savvy readers.
In the world of podcasting, the flywheel is spinning: new technologies including AirPods, connected cars, and smart speakers have made it much easier for consumers to listen to audio content, which in turn creates more revenue and financial opportunity for creators, which further encourages high-quality audio content to flow into the space. There are now over 700K free podcasts available and thousands more launching each week.
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