Valuing a Business

Last night EO Atlanta had an event on positioning a business for sale including how to value it. Typically a business that is bought by an acquirer actively browsing is worth more than when a company shops itself around to other companies. Let’s look at a few more factors in valuing a business: Concentration of…

Venture-Backed Zombie Startups

There’s a term used to describe startups that have raised money from venture capitalists (VCs), been around for several years, built sustainable businesses, but don’t have the hockey stick growth necessary to raise more money or provide a venture quality return: zombies. Zombie startups are actually more prevalent than you might think and represent one…

The Best Exit Strategy is to Not Have One

Much of the tech startup media is obsessed with big exits, which make for fun-to-read stories. In a blog post today Jason Cohen writes about his new WordPress startup and provides a good answer as to his exit strategy in the comments: Success for me is defined as: Creating a company that generates at least $30k/month in…

How to Help When it is Time to Shut Down a Startup

At least once a quarter I meet with an entrepreneur that is at the end of their ropes and should shutdown their startup. Giving up is hard. During these meetings the entrepreneur is seeking help, chronicling the many different things they’ve tried, talking about when they’ll run out of money, and doing everything but coming…

Ask the Right API Questions

In yesterday’s post on saying ‘no’ to most opportunities, I mentioned that API integrations, assuming no custom work, are fine. An API, or Application Programming Interface, is a way for two software programs to communicate with each other in an automated manner. The challenge with most startups is that they don’t have a robust API.…