Gene Godick’s Post

After successful IPOs from Astera Labs and Reddit, there’s renewed optimism about a thawing in the IPO market. That’s a great sign for all privately-held companies, potentially foreshadowing a better investment climate downstream for ambitious venture-backed startups that are still early in their growth journey. If your VC-backed startup needs additional support positioning itself to capture investments, our experienced outsourced CFO and accounting professionals are here to help. Learn more about our services for VC-backed companies here: https://hubs.ly/Q02sq8ss0 #gsquared #gsquaredpartners #gsquaredCFO #chieffinancialofficer #cfo #accounting #fractionalcfo #ceo #virtualcfo #business #entrepreneur #parttimecfo #smallbusiness #chiefexecutiveofficer #finance

Profits or path to profits is the key to any startup success. When the eventual listed share price is driven by profits, everything else is a backward calculation. And eventually you have to list (if you have external investors) as they have to be given exit. All businesses need "permanent capital" which only the public markets can provide. #founders #venturecapital

What are Supervoting Shares, and how do I get them? Supervoting shares are a type of equity in a company that grants their holders more voting power than regular shares. Typically, ordinary shares come with one vote per share; however, supervoting shares might offer 10, 100, or even more votes per share, depending on how they are structured. This mechanism is often used by founders and early investors to retain control over their company's decisions, especially in matters like board composition, mergers and acquisitions, and other strategic directions. The concept gained prominence with technology companies, where founders sought to maintain their visionary approach while raising capital from public and private investors. For founders of early-stage startups, the allure of supervoting shares lies in the promise of control. However, this mechanism probably does not make sense for them due to several reasons. First, implementing a dual-class share structure can be viewed negatively by new investors, who may see it as a sign that the founders are unwilling to be accountable to their shareholders. This can make it harder to raise funds. Second, the concentrated control can deter good governance practices, as the checks and balances provided by a diverse group of shareholders are weakened. Lastly, supervoting shares may not be necessary for early-stage startups where the founders typically already have significant control over the direction of the company. Instead, focusing on building a solid business foundation and fostering good relationships with investors might be a more prudent strategy for long-term success. #StartupFunding #CorporateGovernance #FoundersAdvice #InvestmentStrategy #TechStartups

The Funding School - TFS : Part 2/2 : Anatomy of VC Funding Simplified : Critical Elements in VC Funding Pitch Deck: A presentation that startups use to pitch their business to potential investors. Should cover #problem, #solution, #marketopportunity, #businessmodel, #traction, #team, and #financials. Due Diligence: The investigative process VCs undertake to validate a startup’s business model, market potential, financials, and team. Involves scrutinizing #legal, #financial, and #operational aspects. Exit Strategy: VCs look for a clear #exitstrategy to realize returns on their investment. Common exit strategies include Initial Public Offering (#IPO), #acquisition, or #merger. Cap Table (Capitalization Table): A detailed breakdown of a company’s ownership structure. Lists all #shareholders and the percentage of #ownership each holds. Important Considerations Dilution: With each new funding round, existing shareholders' ownership percentages decrease. Founders need to balance raising funds with the #dilution of their #equity. Control and Governance: VCs often require board seats and #votingrights, impacting decision-making. Startups must navigate #investor relations carefully to maintain control. Milestones and Metrics: Clear #milestones (e.g., product launch, revenue targets) are essential for securing subsequent funding rounds. Startups should track key metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), and Monthly Recurring Revenue (MRR). VC funding is a vital mechanism for high-growth startups seeking #capital to scale their operations. Understanding the stages, key players, terms, and strategic considerations is crucial for founders aiming to navigate the #venturecapital landscape successfully.

PO Insights for Startups: A Quick Snapshot Embarking on an IPO (Initial Public Offering)? It's a pivotal move for startups, transforming how you operate and are perceived. Here's a quick look at what to expect: 📉 2022 Trend: A significant decrease in global IPOs due to market volatility. 🕒 Timeline: On average, prepare for a 6-12 month journey, involving financial audits, legal compliance, and strategic planning. 📈 Post-IPO: The real challenge begins. Maintaining growth and meeting investor expectations are vital. IPOs are more than just funding; they're a strategic game-changer. Ensure your startup is ready for this significant leap when the time is right. #StartupGrowth #IPOJourney #MarketInsights Credits: Finance Strategists & EY

Why are financial models so crucial for startups and SMBs? 🤔 They provide a clear roadmap to success, guiding you through financial challenges, attracting investors, and enabling data-driven decision-making. 📊💪 You can leverage financial models to work for you, but it’s important that they’re built properly. We’re partnering with Forecastr to show you how it’s done! This event is an interactive session as they build a real financial model for a real founder. 🗓️: September 7, 2023 ⏰: 2PM ET Register ⤵️: https://lnkd.in/gY-5CtTD #startups #founders #financialmodel #finance

"Build your business with the exit in mind." Thank you to Thomas Smale, Founder and CEO of global M&A advisory firm FE International, Inc. for your presentation at LeadsCon where you underscored the importance of #marketing in increasing exit valuations for startups. Power Hour: What Makes a Business Worth More? Lessons From $50 Billion in Exits What Actually Affects Valuation: - Cashflow - Growth rate - Retention https://lnkd.in/gUe_Qx-s #businessvaluation

Faces of Techsquads: Fractional C-Level Edition 🚀   At Techsquads, we offer comprehensive fractional C-level support to empower entrepreneurs and tech companies on their journey to success.   Allow us to introduce John Laskey, a standout fractional CFO within the Techsquads C-level network. With an unwavering commitment to financial excellence and a proven history of catalyzing growth, John has been a driving force behind the success of numerous startups.   He's here to assist tech companies and entrepreneurs with a range of vital services: - Fund Raising, Financial Modeling, Operating Plans - Stakeholder Liaison (Boards, Legal, Investors, Banks, Risk Brokers) - Sales Cycle Assistance - Equity Management (Cap Table, Equity Incentive Plans, etc.)   Ready to take your business to new heights? Reach out to learn how our Fractional C-level services, led by experts like John, can transform your growth trajectory. #Techsquads #FacesOfTechsquads #CLevelEdition #FractionalCFO #FinancialExpertise #StartupGrowth #TechLeadership #StartupSuccessStories #CFOMagic #TechSquadGoals #EmpoweringStartups

So, You’re Thinking Of Taking Your Startup Public.  Are You Ready? Here’s What You Need To Know As the IPO market picks up there are certain steps companies must take to ensure the going-public process goes smoothly and successfully.  https://lnkd.in/ehVQsKKr #msk #ipo  Mitchell Silberberg & Knupp LLP

Does getting on the road to success require following VC advice to a T? Not always. Here is how we grew Aha! to a $100M+ business — while doing what VC firms caution against: https://bit.ly/3H91aUK