Geri Cohen

How to value a seed stage company? Who knows...(Well, Jack McQuire does but I had to fill in for him at the last minute for last week's Valuation Masterclass.) Here's a slide I prepared highlighting some of the recent seed rounds we have led and supported. Two surefire valuation methods: comparables (i.e. numerous rational references to companies similar to you) and the market (i.e. pitch as many investors as you can and see where they land). I have seen valuations double simply as a result of well-managed competitive processes. Governance, Terms, and War Stories sessions coming up. Register here: https://lnkd.in/ghJJpdR4

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Reality Engagement —— I started PHX Ventures because I want to help founders in Arizona build high-growth software companies that achieve venture scale. I can handle the good, bad, and ugly of company building. I’ve lived it. I can handle losing money. I don’t like it, but I can handle it. I can handle bad news and disappointment. Company building is a roller coaster. I can handle a changing market and new competitors. Market opportunity and market dynamism go hand in hand. I can handle co-founder breakups and key team member departures. It’s not great but it’s fairly normal. I can handle bad quarters and product problems. Stuff happens in startups. What I can’t handle is a lack of engagement with reality. Willful ignorance or disregard for data won’t make your business better. If the math of your business is telling you something is broken then it means something is broken. Let’s just fix it. And let’s fix it right now. Let's at least try. I love optimism. But I love realism even more. Broken things tend not to fix themselves. In my experience, the best founders have the highest engagement with reality. Just tell me what about your current reality is giving you angst. Tell me the problems in the business. Just tell me. Don’t sell me. Tell me. I can handle it. And maybe I can help. #founders #startups #b2b #saas

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Keys to Catching an EdTech Unicorn 🦄 • Too much investment going into incremental vs. transformational change - only 7% categorized as "transformative" EdTech in 2020 • EdTech struggles to attract VC funding due to challenges selling to risk-averse districts favoring incumbents • More capital needed for diverse founders closest to problems, innovative use of student data, and inclusive product design The EdTech industry is ripe for disruption, but realizing billion-dollar "unicorn" potential will require redirecting investment toward truly transformative solutions led by diverse innovators. #Education #EarlyYears #Earlychildhoodeducation #Childcare #Nurseries #Preschools #Edtech #K12Education #PrivateEquity #VentureCapital #ImpactInvesting https://lnkd.in/d9ipZxUH

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Very good advice to founders on hiring your first sales exec. I especially like how you outlined the process to know when it is the right time to hire someone.

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Someone asked me how to move from SW to HW / robotics as a kickass builder excited to jump in. Love it! My response: robotics needs more great SW leaders who treat HW like a commodity, figure out a huge market need / GTM path, then pull in a team to unlock that.  With a SW mindset and SW architecture thinking. A lot of MechEs in love with their tech and the HW.  The HW is commodity - hard but commodity - and SW is where the interesting stuff is.  Simpler is better.  Most important is problem selection.  That is where you make / break the company and idea. And yes - there is HW innovation to be had - and I love folks doing that and doing it well. But there are far, far more opportunities for automation and problem solving with huge value creation now, with basically commodity OTS HW and SW. Choose problem, assemble solution, kick butt.

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Exciting news for startups! California accounts for about 50% of all venture investments. The not-so-secret reason is that non-competes are illegal in California, so engineers at FAANGs can build competitors without fear. Today, the US Federal Trade Commission declared non-compete agreements illegal nationwide. This means that engineers at big tech companies can now leave and build their own companies without fear of violating a non-competes (legacy agreements for executives are still enforceable - talk to your lawyer), this is a step in the right direction for fostering innovation and competition across the country. A variety of big-business groups have vowed to sue to bring non-competes back, but at least for now, they're gone! #startups #innovation #competition #noncompete Official Announcement: https://lnkd.in/gRXUpgDy Impending lawsuit: https://lnkd.in/gqSiVuTd

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Thought for today…Just because the numbers you deal with get larger does not mean the ancillary supporters should charge relative to the deal size. Yes, complexity increases as the dollar size goes up but not in order of magnitude of 1 to 1. Case in point, in the last 3 weeks I’ve blown up a number of providers(one today😂) involved with deals we were closing. In one instance…somehow legal fees ballooned to 2k/hr with standard docs and junk fees related to the transactions at similar levels which were way out of line. We saved high 6 figures when these were called out and I said we would walk if they didn’t acquiesce to the number we named(which was very fair). They relented but only after we called their bluff! Bottom line, call out abnormalities and back it up with industry standards to save a lot of $$$. I’ve seen this happen more with me than other friends at similar levels of business simply because my last name is, Manywounds🤦🏻‍♂️. It’s an advantage, use it. Every good business person knows to never judge a book by it’s cover. Anyone else have similar circumstances when negotiating?

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Seeking Investors or Capital In the past decade, I've built a remarkable investor network of over 43,000 individuals, collectively funding over $100M in deals within our first few years. Here's how it all began. Over ten years ago, I returned to Utah after a successful stint sharing an office with a "Shark" and launching products via TV shows, infomercials, and online platforms alongside athletes, celebs, and influencers. The initial launches were smooth, but scaling became the challenge—each promising deal required significant capital for growth. To bridge this gap, I started hosting "Investor Meetups" in my living room, which quickly outgrew the space and migrated to vibrant coworking venues like Church & State and Silicon Slopes HQ. At one memorable gathering, we were so packed with investors that I resorted to using a tree trunk table for presentations to ensure everyone had a clear view (see pic). Today, we've evolved into hosting two weekly Zoom calls, exploring and financing diverse opportunities in: - Real Estate - Alternative Energy - Fundraising for Funds - Sports and Entertainment (concerts/festivals) - Charities and Philanthropy - Oil and Gas - Tech/AI/Blockchain If you're seeking funding for your venture or project, reach out to me at Brock@brockfelt.com. Rest assured, you won't need to stand on a tree stump—I facilitate Zoom sessions with our investor groups to assist in securing your funding. Let's connect and propel your vision forward. Email me at Brock@brockfelt.com to explore how we can collaborate. *Ps. You won't need a tree stump in our virtual meetings!* 🌳 #InvestmentOpportunities #Funding #Entrepreneurship #VentureCapital #BusinessGrowth

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Should I use only equity for my search fund acquisition? 👇 If you can convince enough shareholders to part with their cash in order to purchase a company, this is the simplest way to go. A few thoughts: 1. Equity carries no covenants or external limits on how you and your team run the company. 2. Since there’s no debt, you have a higher risk tolerance. 3. Equity investors are patient. Debt holders are not. 4. Investors get well rewarded for shared success. If you do well, they do very well. This can make it easier to raise capital. 5. Some companies are not a good fit for debt. Lenders like predictable cash flow, hard assets and a history of profitability. 6. Equity is easy to raise compared to debt, which involves due diligence, counterparty risk, and tight terms. On the other hand, equity is expensive. You will have to give away the value of the money up front, and more.

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Valuation Monday Pt 2. - For anyone looking to break into buy-side finance: Not all company growth is created equal. What do I mean? If you have a low ROIC company (Return on Invested Capital), investing in revenue growth will actually devalue the company. Strange, right? Let's look deeper. Let's say a company's WACC (Weighted Average Cost of Capital) is 10%, but its ROIC is 5%. For every dollar invested in revenue growth, a negative 5% return on investment is manifesting. This is because the cost of growing the company is more expensive than the revenue itself. Low ROIC companies should focus on fixing ROIC issues, which at the core indicate a lack of any form of competitive advantage. High ROIC often indicates a great competitive advantage. ROIC also tends to erode over time as new competitors enter a market, technology changes, etc. Companies that can sustain higher ROIC growth than their industry average for long periods of time tend to command very high valuations because they are efficient with invested capital. If an investor gives them money, they tend to have more certainty that it will result in value being created. To summarize: 1. Low ROIC companies should focus on building moats and efficiency. 2. High ROIC companies should invest in growth. 3. ROIC differs by industry. 4. If WACC > ROIC value is destroyed, if WACC < ROIC value is created. What is a company that has an interesting ROIC? Either low or high, and how would you fix it or take the opportunity to invest in it. The best answer will get 30 minutes to ask me anything they would like in the next month. Congratulations to Yianni Patiniotis, for a very creative answer on the last post, let's chat! Roland Filler Kristina Kulikow Carson Boettinger Michael Tahirovic Lijia H. William Mutume, CFA, CSC® Amplifier Capital #finance #student #valution #ROIC #WACC #competitive #value #investing #valueinvesting #growth #stocks #PE

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I'm fascinated by what people are searching DeepCast for to find related knowledge embedded in the information rich podcast audio format. Some latest examples from today: 1. What is an endometrial polyp? / Endometriosis 2. Teaching in higher ed 3. Binge worthy non-fiction 4. First time mother / I'm expecting my first child / Baby food / Baby led weaning 5. The future of dining 6. Accommodations for long COVID 7. The complexity of succession planning 8. How does DNS work? What a wide range of things folks are searching for from women's health, to early parenting, to searching for new entertainment, to deep tech, and more. I love our natural language search feature! I can't wait to see search behavior change as our catalog coverage increases and more people use us as a primary point of new podcast discovery!

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This is fascinating. My two portfolio companies on the fastest path to Series A have kept the leanest teams. Both of them are lingering around cash flow positive on a monthly basis. One is growing gangbusters, one is growing nicely. Good data below to show that these activities are being rewarded. We're still in cockroach times. Also fwiw, I'm constantly amazed by and learning from Peter Walker. If you're interested in the data of venture funding (AND IF YOU'RE A FOUNDER, YOU SHOULD BE), then follow Peter.

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The Product Marketing Alliance just issued their 2024 State of #PMM report.... And one REALLY telling survey chart has to do with the PMM TechStack. Dominating the list are core tools (analytics, reporting, CRM, collaboration, market research etc.). These are *great* benchmarks to help younger PMM teams decide where their gaps lie. But what I find interesting is that there are also a number of Demand Generation items on the list (email marketing, video marketing). Shouldn't these be owned by other teams? Or, do they just naturally fall into PMM? https://lnkd.in/g6KAccB4

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Generations in the Wild - KEY INSIGHT: Growing demand for well-developed campgrounds! As co-founder at Outdoorsy, I've always believed in staying closely attuned to what families want from their vacation experience. So our strategy to invest in owning and operating campgrounds was a great way to get to know our guests, face to face. This is even more important as 🌲the $1 trillion outdoor industry is evolving faster than ever and why we launched ‘Generations in the Wild’, Outdoorsy’s inaugural independent research report, which delves into the values and preferences of four generations of RVing American families. 🏕️ One standout discovery is that developed campgrounds are in high demand in 2024. In fact, 8 of 10 families prefer them. The challenge? America’s best RV parks are often booked months in advance. What exactly defines a well-developed campground? We think Outdoorsy Bayfield does a pretty good job of hitting all the marks. Think: ✨ Top-notch facilities: Spotless showers, bathrooms, outdoor kitchens, and inviting community areas. 🌿 Seamless online booking to the outdoors: From pools and pickleball courts to fishing, nature trails and dog friendly areas, easy access to nature for the whole family makes all the difference. 👩‍💼 Friendly, available staff: A warm Outdoorsy welcome and helpful assistance go a long way in creating a memorable stay. 🌟 Additional perks: Well-stocked general store, great WiFi connection, onsite food options, and enticing swag add extra flair to the camping experience.. What's the bottom line? The outdoor industry is evolving, and developed campgrounds are poised to steal the spotlight. Please 🔍 dive into our Generations in the Wild Travel Report to stay ahead of the curve in the outdoor industry #Outdoorsy #OutdoorIndustry #CampingTrends #ThoughtLeader #GenerationsInTheWild 🏕️

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Kudos to Zuck for taking aim at VP titles, the proliferation of which is inversely correlated to how lean a company is and how fast it can move. Hope more CEOs follow in his footsteps. It’s also an appropriate time to reshare my old article on Titles. It’s a call to arms to be very thoughtful and intentional about Director / VP titles and avoid them for as long as possible. https://lnkd.in/g4zQkEr

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CFOs when you bring forward a business case that says that we can save ______ hours with a new tool. Time savings only matters if: 1. More can be produced with the same resources - with a clear plan articulated on HOW this happens 2. Less people are required Otherwise? Not in my house!

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People buy software for 2 main reasons: 1. Increase Revenue 2. Reduce Cost You can hear more form Tomasz Tunguz of Theory Ventures on this week's episode of TFR.

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https://lnkd.in/e-Cc-PhA Just wrapped up a case study highlighting some successful value creation work for a vertical software company. After a funding event, it can be tough for management teams to align on which initiatives to tackle first. Here are a few tips from my experience: 📈 Prioritize Compounding Benefits Start with initiatives that enable or build capabilities. These early projects are not the most glamorous. The long term value is the momentum they create and tone they set. They pave the way for bigger wins down the line. 🚧 Address Bottlenecks We identified and fixed a major technical bottleneck in the sales funnel. This gave us an immediate boost to revenue and win rates. The less obvious win was a finding that our marketing efforts were more effective than we thought. Many opportunities fitting the ideal customer profiles were getting stuck at the bottleneck! ✴ Find the Triple Word Score Initiatives Focus on initiatives that add value across multiple valuation categories like revenue, margins, and multiple expansion. My favorites are those that improve operating leverage and scalable unit economics. Operating leverage improves as each dollar of increased revenue earns a little more Operating Margin (EBITDA) over time. In the case study, I renegotiated two of the largest variable cost supplier contracts, leading to immediate improvements in unit contribution margins and setting the stage for increasing margins as revenue grew. This is a valuable function of a durable business model. Most teams agree on what needs to be done, but not always on the order. Choose initiatives that start building a solid foundation for future investments or the Quick Wins with high impact. A few good articles that touch on the technical concepts.. Healthtech: Show Your Magic | Andreessen Horowitz  https://lnkd.in/eGkDnkiG The Gross Margin Problem - Bottom Up by David Sacks https://lnkd.in/e9J2Eqaa

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On our latest #CAS panel on marketing and positioning CAS, we couldn't help but bring up pricing as a key component! Amy Vetter, CPA, CSP, CGMA, RYT delivered a lot of hard won lessons in pricing, just a few I dropped below! (if you're not getting invited to attend these panels, be sure to get on our newsletter https://lnkd.in/e96TXajN) 🔥 Figure out who you are, who are the customers you want to attract, how do you do the work so you understand overhead cost / cost of doing business, THEN building out the price 🔥 Price does NOT equal timesheets 🔥 3 pricing pages PER niche so packages can communicate specific value / KPI's for the niche 🔥 You ideally want deliverables that are also not time bound (videos, tutorials) 🔥 You can also include 'a la carte' items 🔥 You MUST scope. You MUST keep to the scope. You MUST train on scope... All.The.Time 🔥 Bookkeepers are the biggest upsell to controllership services (bookkeepers know their scope!) 🔥 If you become a 'yes' person to clients, you sell something your staff is likely not trained on, therefore it's unlikely it will be profitable Jetpack Workflow The B3 Method® Institute #advisory #accounting #pricing #marketing

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