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.
Co-Founder Equity Calculator 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.
How to Divide Equity to Startup Founders, Advisors, and Employees Since returning from MIT back in June I’ve been focusing on the growth of the company. It has been pretty much on mind non-stop for months now. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders The Founders’ Pie Calculator by Frank Demmler, an Associate Teaching Professor of Entrepreneurship at the Donald H. Jones Center for Entrepreneurship at the Tepper School of Business at Carnegie Mellon University invented an interesting way to divide equity between founders in a way that is both logical and fair. The idea behind the calculator is to come up with a weight for each of these five elements and then assign a value to each founder on a scale of 0-to-10. Equity for Board of Directors and Advisory Board When figuring out how to provide equity to advisors, you can use this chart as a guideline. Equity for Employees
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
OpenRefine 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
Real Bottom-Line Savings: Why Hospitals Should Re-Evaluate Purchased Services Purchased services agreements present an area of potential savings for operational budgets if hospitals have the tools to control and reprioritize their purchased services spending. In a webinar hosted by Becker's Hospital Review on Jan. 16, hospital contracting experts shared their facilities' best practices and success stories of reducing operational costs by examining their purchased services contracts. Beverly Schierer, vice president of research and analysis of MD Buyline;, Laurie Clayton, regional director of contracting of St. Joseph Health's Northern California Region in Santa Rosa, and Cris O'Neal-Gavin, system contract manager of purchased services of St. The magnitude of purchased servicesPurchased services account for more than $1 billion in spending across the healthcare industry every year, said Ms. Ms. Similarly, a lack of benchmarking makes it difficult for hospitals to compare their services to ensure they are receiving the highest quality services at the lowest prices.
Pharmaceutical Dashboards | iDashboards Pharmaceuticals Dashboards iDashboards Pharmaceutical dashboard software is providing pharmaceutical companies across the country with the ability to measure and monitor their KPIs, improve organizational performance and increase shareholder value. Utilized to display a wide range of metrics; dashboards are a critical component in increasing business efficiencies and creating a competitive advantage. iDashboards draws data from multiple sources, allowing KPIs and metrics to be displayed in a single location, leading to a timely and more informed decision making process.. Examples of pharmaceutical dashboards and KPIs include: Profitability Dashboard: Revenue by State, Territory and Drug Market, Market Share by Geography, Cost of Drug Discovery, Expected vs.
GPO Facts & Figures 1. In its Annual 10-K filing for 2011, MedAssets reported that its Spend and Clinical Resource Management business segment "manages more than $48 billion of annual supply spend by healthcare providers, including over $27 billion of annual spend through our group purchasing organization on behalf of more than 2,600 hospital clients." MedAssets only collected administrative fees on the $27 billion in contract purchases and not on the other $21 billion in purchases for which it negotiated the contracts, according to the company. MedAssets will publish 2012 data when it releases its 4Q2012 financials in 1Q2013. 2. 3. 6. 7/8. Please note that HPN strives to be as accurate as possible with these numbers that the GPOs report.
health-care-medical-market-research - Industry Trends Health Expenditures and Services in the U.S.: Health care costs continue to rise rapidly in the U.S. and throughout the developed world. Total U.S. health care expenditures were estimated to be $2.9 trillion in 2013, and are projected to soar to $3.4 trillion in 2016. The health care market in the U.S. in 2013 included the major categories of hospital care (about $929.0 billion), physician and clinical services ($588.8 billion), dental services ($116.6 billion) and prescription drugs ($262.3 billion), along with nursing home and home health ($238.6 billion). Medicare, the U.S. federal government’s health care program for Americans 65 years or older, provided coverage to 50.7 million seniors in 2013. Medicaid is the federal government’s health care program for low-income and disabled persons (including children), as well as certain groups of seniors in nursing homes. Health spending in the U.S., at about 18.0% of Gross Domestic Product (GDP) in 2013, is projected to grow steadily.