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How Startup Valuation Works - Illustrated

How Startup Valuation Works - Illustrated
How would you measure the value of a company? Especially, a company that you started a month ago – how do you determine startup valuation? That is the question you will be asking yourself when you look for money for your company. Create an infographic timeline like this on Adioma Let’s lay down the basics. Why does startup valuation matter? Valuation matters to entrepreneurs because it determines the share of the company they have to give away to an investor in exchange for money. How do you calculate your valuation at the early stages? Figure out how much money you need to grow to a point where you will show significant growth and raise the next round of investment. How to Determine Valuation? Seed Stage Early-stage valuation is commonly described as “an art rather than a science,” which is not helpful. Traction. Reputation. Revenues. For consumer startups having a revenue might lower the valuation, even if temporarily. Hotness of industry. Not necessarily. It comes down to two strategies.

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Angel Resource Institute Topics: Angel Research, Angel Groups, Angel Market Data, Valuation Summary: The 2012 Halo Report is a collaborative project of Angel Resource Institute, Silicon Valley Bank, and CB Insights. The Halo Report provides on-going trends of angel group activities in US companies. ARI (n.d.). 2012haloreportinfographic [Article]. Retrieved from ARI. “2012HaloReportInfographic” ARI. n.d.. 5 bootstrap dos and dont's to cement and grow your business You may be familiar with bootstrapping, an economic circumstance in which intrepid entrepreneurs launch and operate a business with little more than their ingenuity and chutzpah. Usually, bootstrap capital is sourced from savings accounts, credit card lines and, when possible, a supportive network of friends and family. Such capital is scarcely sufficient to launch the business, let alone support operating cash flow needs. Undeterred, entrepreneurs continue to try their odds at clearing the fence. Do #1 – Focus on team and culture. Create the workplace you would seek as a prospective employee. Do #2 – Follow the money. Do #3 – Under-promise and over-deliver. Do #4 – Seek deals because every penny counts Whether you are purchasing hardware, hiring talent, underwriting new business development, protecting your intellectual property or undertaking a myriad of other costly commitments, remember that your capital is precious; count your pennies and make sure you live within your means.

Conversion: Big Data's Sidekick inShare15 You can’t have missed the buzz about how big data tools can take your business to a whole new level. They can, but, by themselves, they are not going to solve all your business challenges. One of the most important factors influencing success is integrating conversion rate optimization principles into your business practice. Do you want to know how satisfying your customer experience is? If you want those big data tools to work for you, you need to pay relentless attention to the principles of conversion rate optimization. Great brands, products and customized buying experiences naturally generate better conversionsFollow the hierarchy of optimization (functional, accessible, usable, intuitive, persuasive)Master the conversion trinity (relevance, value, call to action)Understand optimizing your conversion rate applies to your entire site; it’s not limited to a landing pageOptimization is not a one-time event or project; it’s an ongoing process Data is nice.

How Funding Works - Splitting The Equity With Investors - Infographic A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic: First, let’s figure out why we are talking about funding as something you need to do. This is not a given. The opposite of funding is “bootstrapping,” the process of funding a startup through your own savings. If you know the basics of how funding works, skim to the end. Every time you get funding, you give up a piece of your company. Splitting the Pie The basic idea behind equity is the splitting of a pie. When Google went public, Larry and Sergey had about 15% of the pie, each. Funding Stages Let’s look at how a hypothetical startup would get funding. Idea stage At first it is just you. Co-Founder Stage As you start to transform your idea into a physical prototype you realize that it is taking you longer (it almost always does.) The Angel Round

Why Angel Investors Don’t Make Money … And Advice For People Who Are Going To Become Angels Anyway Editor’s note: Andy Rachleff is President and CEO of Wealthfront, an SEC-registered online financial advisor. He serves as a member of the board of trustees and vice chairman of the endowment investment committee for University of Pennsylvania and as a member of the faculty at Stanford Graduate School of Business, where he teaches courses on technology entrepreneurship. Prior to Wealthfront, Andy co-founded and was general partner of Benchmark Capital. Everywhere I go in Silicon Valley I hear people discussing their angel investments. My skeptical perspective on angel investing is colored by my 25 years in the venture capital business and the data I use to teach my students at the Stanford Graduate School of Business. I know that many of our clients at Wealthfront are tempted to become angel investors after they sell their company stock post-IPO. Those premier venture firms succeed because they have proprietary knowledge of the characteristics of winning companies.

The War on Marijuana in Black and White: Report June 3, 2013 OVER-POLICING Between 2001 and 2010, there were over 8 million pot arrests in the U.S. That’s one bust every 37 seconds and hundreds of thousands ensnared in the criminal justice system. WASTED TIME AND MONEY Enforcing marijuana laws costs us about $3.6 billion a year, yet the War on Marijuana has failed to diminish the use or availability of marijuana. STAGGERING RACIAL BIAS Marijuana use is roughly equal among Blacks and whites, yet Blacks are 3.73 times as likely to be arrested for marijuana possession. UPDATE (09/11/2013): In the original version of this report, the Minnesota dollar figure under "Money spent enforcing marijuana possession laws in 2010" on page 158 was mistakenly printed as $94,838,792.

Determining Valuation Multiples 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. That's a good question so I figured I'd show how to calculate multiples for various sectors. For this exercise we will focus on the software as a services (SAAS) sector. The next thing you do is create a spreadsheet with a bunch of companies on it. Please don't get too caught up in the numbers in the spreadsheet. For each company, I collected revenues and EBITDA for 2011 and 2012 and current values for market cap, cash and debt. I then put all the numbers down and used formulas in the spreadsheet to calculate enterprise value which is market value minus cash plus debt. The results of this exercise are as follows: SAAS Price/Rev 2011: 4.8x SAAS Price/Rev 2012: 3.9x SAAS Price/EBITDA 2011: 66x SAAS Price/EBITDA 2012: 31x

Guitar Lessons for Beginners Archive - Free Guitar Lessons Online - Acoustic and Electric Guitar Lessons The following free guitar lessons have been created with the beginner in mind. It is suggested that new guitarists begin at lesson one, spending at least one week learning the exercises and songs in that lesson before moving on. Learning to relax while playing guitar will help immeasurably, so be sure to have fun! Learning Guitar - Guitar Lesson One Have you always wanted to play guitar, but never got around to actually getting started? Learning Guitar - Guitar Lesson Two This free guitar lesson picks up where lesson one left off. Learning Guitar - Guitar Lesson Three Lots more instruction for beginner guitarists in lesson three, including learning a blues scale, a new strumming pattern, three new chords, and many new songs. Learning Guitar - Guitar Lesson Four In the fourth installment of this this free guitar lesson series, we learn about power chords, note names on the sixth and fifth string, new strumming patterns, plus a whole bunch of new songs.

Useful Data Sets Last Updated: January 2014 This page provides information on how to collect data from a variety of sources. it also allows you to look at and download a number of data sets that you might find useful in corporate finance and valuation. If you have trouble viewing the data in your browser, you can download the data in excel format. I will try to keep them updated, and include the dates of the updates with the data sets. History and Philosophy: I am always flattered to see my data used, but I want everyone using the data to be aware of how and why I put together this data, and the ways it can be best used. Important Data Source update: After twenty years of using Value Line for my US data updates, I have had to switch in 2014. I have switched to a combination of Morningstar, Bloomberg and Capital IQ data for all firms, with an overlay of my own modified industry categories. Date of last update: Variable definitions: The variables are defined and described in this link. Collecting Data

HTML & CSS From Scratch in 30 Days This class is perfect for anyone with a great website idea or just an interest in learning how to code. This is a beginner-level class so if you have basic computer literacy and an internet connection, you're all set. Learn at your own pace. You'll leave this class with the skills to create your very own stylish, professional, and responsive website. What You Will Learn HTML and Web Fundamentals. What You'll Make Spread throughout the course are Code Challenges. Handouts and Resources You will be provided with extensive handouts and suggested reference materials to continue your learning even after the course.

About CLPS « CLPS The Executive Board for the 2009/2010 School Year (click to email) President: Andrew J. Simmons Vice President: Cindy Trinh Treasurer: Joshua Smith Symposium Director: Dominique Stafford Symposium Chair: Kate Felice Communications Director: Amanda Hiffa Tech Support/Logistics: Gideon Elliot Moot Court Coordinator/Coach: Vanessa Macias Want archived information on past E-Boards? Faculty Advisors: LaVonda Reed-Huff, Syracuse University College of Law Our Constitution: Have more questions? What is CLPS? The Communications Law and Policy Society ("CLPS") is a student run organization at the Syracuse University College of Law. What is communications law? Communications law is a body of primarily federal statutes, regulations, and judicial decisions that govern radio; broadcast, cable, and satellite television; and other means of electronic communication. CLPS Goals & Objectives Membership Please check out homepage for dates and time of our weekly meetings. CLPS Activities The Annual Symposium Questions?

How to Land a Better Job Without Ever Looking For it Let’s face it: Looking for a job is a huge hassle. It’s stressful (who really enjoys interviewing?), time-consuming (say goodbye to weekends outside) and can be a blow to your self-esteem (rejection is never good for the soul). What if there were a way to land an awesome job without ever feeling trapped in some sort of job-seekers purgatory? Good news: There is. In this new digital world of work, the era of personal branding and social media and online networking, it’s possible to have appealing opportunities fall into your lap — without ever having to beg, er, look for them. Here’s how to help jobs come to you, rather than the other (stressful) way around. Showcase Your Value Online With a Blog Yes, you should blog to get your next job. A well-done blog also converts first-time visitors into believers of your brand. As an added bonus, when your blog serves as your first impression, you can present yourself however you’d like. Keep Your Network Warm Tell People What You’re Good At

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