XUP

𝗜𝗳 𝗬𝗼𝘂𝗿 𝗣𝗿𝗲-𝗦𝗲𝗲𝗱 𝗔𝗱𝘃𝗶𝘀𝗼𝗿 𝗔𝘀𝗸𝘀 𝗳𝗼𝗿 1%, 𝗣𝗼𝗶𝗻𝘁 𝗧𝗵𝗲𝗺 𝗛𝗲𝗿𝗲 The median equity grant for pre-seed advisors in 2024 is 0.25%—and only 1 in 10 advisors get 1% or more. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: ▪ 0.25% feels small, but when the first full-time hire is getting just over 1%, this makes more sense. ▪ Top advisors are either industry giants or niche experts—those you simply can’t access elsewhere. ▪ Performance-based equity is becoming common: for example, equity tied to making key introductions or hires. ▪ Specialized industries like Biotech, Hardware, and Medical Devices tend to offer more advisor equity. ▪ Many advisors are becoming strategic angels, bringing capital and tighter alignment with founders. ▪ Keep your advisory board lean—most startups have 1-2 advisors to avoid over-dilution. 2024 is the year to bring on the right advisors, not just more of them.

Sources of Capital for Startups: Selecting the right funding source can be a game-changer for startups. Here’s a breakdown of available options and considerations: 1. Funding Sources – Options range from personal savings and loans to angel investors, venture capital, and corporate funding. Each comes with different levels of involvement and expectations. 2. Stage and Burn Rate – Funding needs shift as a startup grows. Early stages may rely on personal funds or angel investors, while growth stages often require venture capital or strategic partnerships. 3. Control vs. Growth – Entrepreneurs must weigh control over rapid growth. Venture capitalists often seek high returns and growth, whereas business angels may prioritize sustainable progress with less control. 4. Angel vs. VC Investment – Angels bring personal capital and sometimes industry expertise, while VCs offer larger investments and more structured guidance. 5. Aligning Goals – Different funders have varying goals and timelines. Founders should align their startup’s goals with the investor’s objectives to create a productive partnership. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

𝗧𝗵𝗲 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗙𝗼𝘂𝗻𝗱𝗲𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 𝘁𝗼 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 This ebook covers the full startup funding life cycle from seed to exit, detailing the available funding sources. Here’s a chapter breakdown: 1. The startup funding life cycle 2. Funding sources 3. Real life stories - funding experiences from startups 4. How to prepare for fundraising I hope you find it helpful! Join 100,000+ founders and VCs who receive these insights in my weekly newsletter: https://lnkd.in/dtifw4mC

Generating Startup Ideas for MIT Entrepreneurship Forum: 1) The document discusses methods for generating startup ideas, including knowing your constraints, looking at intersections of domain insights, unmet needs, and changes, and getting customer insights through research. 2) It provides an example of developing an idea to help working moms by addressing needs around lack of time for cooking and relationships. 3) The example idea generated is an "Airbnb for babysitting" that allows stay-at-home moms to earn money babysitting for working parents to enable date nights. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Marketing for Startups: Founders, if you're navigating the complex world of startup marketing, this one's for you. It's time to demystify marketing and set your business on the path to success. Key insights: 1) How founders should go about marketing at initial days 2) Things founders can do without a marketing team 3) When and how to hire the right marketing team 4) How to set the right goals/ targets for marketing teams 5) Getting sales and marketing to work together PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Financial Statement Analysis Learn to analyze: Balance Sheet Income Statement Cash Flow Statement In just 2 minutes! 1️⃣ Balance Sheet A balance sheet consists of: - Current Assets - Long-Term Assets - Current Liabilities - Long-Term Liabilities - Shareholders' Equity It shows what the company owns and owes, based on the formula: Assets = Liabilities + Equity Questions to consider: - How much debt does the company have? - Does the company have more current assets than current liabilities? - Is there a significant amount of goodwill on the balance sheet? 2️⃣ Income Statement An income statement displays the company's income and expenses: Structure: Revenue - COGS = Gross Profit - Operating Expenses = Operating Income - Non-Operating Income/Expenses = Pre-Tax Income - Taxes = Net Income Questions to consider: - Is the company profitable? - Are the costs of goods sold high compared to sales? - How much of the sales revenue is converted into net income? 3️⃣ Cash Flow Statement The cash flow statement includes: - Cash Flow from Operating Activities - Cash Flow from Investing Activities - Cash Flow from Financing Activities It shows the cash entering and leaving the company. Operating Activities: Net Income Non-Cash Changes Changes in Working Capital = Cash Flow from Operations Investing Activities: Capital Expenditures Acquisitions Proceeds from Sale of Investments = Cash Flow from Investments Financing Activities: Borrow/Repay Debt Issue/Repurchase Stock Pay Dividends = Cash Flow from Financing Questions to consider: - Are earnings effectively translated into operating cash flow? - Does the company have positive free cash flow (operating cash flow - CAPEX)? - Has the company increased its cash position compared to last year? Source: Mohamed Samir 📚 Did you like this? Grab a PDF with 50 more visuals like this one here: https://lnkd.in/dGjhRACC

𝗔𝗹𝗹-𝗶𝗻-𝗢𝗻𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗶𝘇𝗶𝗻𝗴 𝗚𝘂𝗶𝗱𝗲 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 When presenting market size, many founders often state, "Our global TAM is $X B, but we're starting with a SAM of $Y B, projecting a SOM of $Z B." However, a Peer VC survey reveals that investors generally dislike this approach. Investors prefer to understand the founder's methodology behind these numbers. Unfortunately, most founders fall short of clearly explaining how they arrived at their market size estimates. To help with this, Sahil S. has put together a comprehensive guide that covers: ● The importance of market size - Perspectives from both founders and investors ● How to accurately estimate your market size - Detailed Top-down and Bottom-up Approaches with examples ● The precise definition of market size ● The ideal timing for estimating market size Find all the details in the attached document👇 Source: Peer VC, Sequoia Capital, Marc Andreessen blogs, Y-Combinator

Been thinking about “Founder Mode” applied to Product. I divided into “Things Product People Think Matter, but Don’t” (Manager Mode) and “Things That Actually Matter” (Founder Mode). So… “Things Product People Think Matter, but Don’t” (Manager Mode): ▪️Story points delivered ▪️Number of Features live ▪️% roadmap in production ▪️Number (or %) of Tickets solved ▪️Management Team’s Happiness ▪️Number of bugs solved ▪️Quickly responding to slack/email/teams Here’s the reverse: “Things That Actually Matter” (Founder Mode). ▫️Roadmap’s impact on revenue and EBITDA ▫️Customer conversion and retention rate ▫️Team happiness level (and pump to ship more) ▫️Customers’ perceived quality of the product experience ▫️Not letting politics get in the way of prioritizing what matters for the company ▫️Rate of iteration, speed of shipping and how quick the team fixes what’s broken ▫️Getting people to deeply care about their craft, execution and delivery ▫️Whatever goes into the roadmap will clearly make the product & company more valuable ▫️Rate of reducing burocracy, unnecessary process and unfocused time “Founder Mode” Product People are spotted a mile away, are promoted 10x faster and probably drive 80% of the products value creation on any given company roadmap. And no, they don’t need to be Founders.

CEO vs CFO vs COO What are the difference in their roles? Knowing what the management does is going to help you in your career. Let's discover together what they do: 1. Their Main Leadership Roles CEO leads the company CFO manages finances COO oversees the day-to-day operations. 2. On Strategic Vision CEO drives strategy, growth, and innovation CFO ensures stability and establishes discipline COO implements the strategic initiatives 3. What Are Their Stakeholder Relations? CEO represents the company to stakeholders and is the public face CFO reports financials to the board and shareholders COO liaises between different departments to ensure smooth execution 4. Their impact on Company's Values & Benchmarks CEO sets corporate values CFO sets financial benchmarks COO ensures operational processes align with these values 5. Their Role in the Market Strategy CEO drives global expansion CFO optimizes existing markets COO manages operational aspects of market penetration 6. What is their Client Focus? CEO focuses on client acquisition CFO focuses on client retention COO enhances service delivery to facilitate both 7. Their Involvement with Risk Management CEO sets the company's risk appetite, CFO manages risk, and COO mitigates operational risks. 8. Their Relation to the Brand CEO develops the brand CFO tracks the performance COO optimizes operational efficiency to uphold the brand promise 9. Their Role on Investments CEO determines investment strategy CFO manages investment portfolios COO allocates resources to meet strategic objectives. 10. Their Involvement in the Product Lifecycle CEO drives product development CFO monitors product profitability COO coordinates product manufacturing and delivery 👉 Do you agree? 👉 What did I miss? - - - - - - Get my best infographics in high resolution PDF for free here: Finance Cheat Sheet: https://lnkd.in/e9eMfVF3 Finance Career Tips: https://lnkd.in/eTmJhdBC Finance Checklist: https://lnkd.in/eCTB3RBC Best Excel posts: https://lnkd.in/e2wWv3tc 50 Finance KPIs: https://lnkd.in/e6TZ4uxf

The Startup Pricing Journey by Bessemer Venture Partners👇