| Founding partners exit IPO year 4 with more than $30M each, cash.
Early Internet B2B startup, IPO year 4: the three founding partners exited with more than $30M each.
- My client once said, “I will not work this hard for a lousy nickel million.” I asked what he wanted at exit; he said, “$20M.” “Before or after taxes?” He replied, “After taxes.”
- May all our dreams come true.
Sale to strategic buyer, year 4: $50M for husband/wife team.
Software startup, disruptive technology: husband and wife founders (CTO, CEO), no capital infusion, no equity out: sold to a strategic buyer in year 4 for $50M.
- Through precise strategies in pricing, strict control of our A-listed distribution channels, resistance to mass-market distribution until the year of sale, and careful handling of the divorce of the founders in year 3, the company was put on the market and sold within months.
- And, we sold with only a brief handcuff on the CEO, as requested.
Seed investors get 50x ROI in 12 months; Series A gets 10x ROI in less than 6 months.
Early Internet new media company: Seed investors saw a 50 times ROI in 12 months; Series A investors saw a 10 times ROI in less than 6 months.
- During a technology downturn, I determined this company’s unique value proposition and wrote the investor presentation,
- Before the founders could complete the Series A round, they sold the company to a strategic buyer.
- And this was during a year of downrounds for capital and virtually no acquisitions.
- Makes you believe in start ups.
$2.2M (U.S.) seed capital from strategic dealflow, no equity out, Year 1.
Joint venture software republisher & distributor in Shanghai, China: I created $2.2M (U.S.) in strategic (seed) capital from pure dealflow with no equity out.
- I offered a variation on the standard international republishing and distribution deal to the world’s leading software publishers (my earlier clients). The deal capitalized the company, the publishers got their investment back in 12 months, kept control of their local-language copyright, and gained early, government-authorized access to the Chinese market in 1997. A win/win. Click here for more details…
$3M in re-start capital closed immediately on a single pitch document
Software company, recovering from 2008 crash: my pitch piece gained a commitment of $1M upon reading, and an additional $2M ongoing.
- The new investors were outside the technology industry. I needed to write the entire pitch piece in 3 pages, in language no more complicated or technical than the words “software” or “database.” This included the unique value proposition, the target markets, why the customers would buy the product, the revenue model, how the company would scale, and so on.
- Upon the first reading, the investors committed the first $1 million of $3 million they ultimately invested.
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