Get flash to fully experience Pearltrees
Budgeting & forecasting
Three years ago, Fred Wilson wrote a great blog post called When Talking About Business Models, Remember that Profits Equal Revenues Minus Costs . The point he made was both simple and profound. The simple part is summed up in the post’s title  .
Last week on MBA Mondays , I talked about valuing an internet marketplace business . In that post, I talked about using 1x gross marketplace transactions and 20x EBITDA as multiples to determine value. In the comments, I was asked about multiples for other sectors.
Date / / Category / Startups
A great inside view on the dark side of the VC funding process. by Aug 29
My mother was a high school mathematics teacher and understood that kids learn best when learning is fun, so at a very young age she started teaching me math “tricks.” In the second grade she showed me how 9 times any number less than 10 was simply that number minus 1 concatenated with the sum of difference plus whatever it takes to get back to 9. For example, 9 x 8 is 8 minus 1 (7) concatenated with 9 minus 7 (2) — 72.
May 24, 2011: May 24, 2011: [Follow Me on Twitter] “ Don’t you know that you are a shooting star, And all the world will love you just as long, As long as you are.” – Paul Rodgers, Shooting Star
Click here to edit contents of this page.
Welcome to Monte Carlo, Excel
Valuation Witchcraft – Where Do Seed Valuations Come From?
An update on the two Excel financial model templates for entrepreneurs I built and released to the web.
“Follow the money card!” – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you.
While some people hate the phrase “failing fast”, I find it instructive when it’s used to signify that one isn’t going to pursue a particular path in the context of a larger set of activities.
Series AA Equity Financing Documents
In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.
One of the more contentious things in the negotiation between an entrepreneur and a VC over a financing, particularly an early stage financing, is the inclusion of an option pool in the pre-money valuation. As my friend Mark Pincus likes to say, "it's just another way to lower the price". I'll accept that critique.