Evan H Fisher

Why Buying Your First Business is the hardest & Financing The Fear is Being seen as too risky by lenders and investors. The Solution: Prepare a solid business plan with detailed financial projections. Work with a financial advisor to enhance your credibility. Consider alternative financing options like SBA loans or seller financing.

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The #1 Factor to Determine Max Valuation in Micro SaaS...is debt financing. Here's why, plus a free valuation calculator... Most buyers in the $500,000 to $2 million valuation range use SBA loans, which come with specific requirements. The SBA requires a Debt Service Coverage Ratio (DSCR) of 1.25, meaning the company needs $1.25 of income for every $1 of debt payments. In simpler terms, the key question is: Can the business afford itself? Does the Micro SaaS firm generate enough income to cover the loan needed to buy the business? As the valuation rises, so do the loan and debt payments. At some point, the valuation requires a loan that breaks the DSCR requirements. The upper limit of a Micro SaaS valuation is ultimately determined by the maximum loan a buyer can secure based on the company's income. Here's a simple calculator to illustrate this concept, helping us all determine valuation more accurately based on the real world 👇 #microsaas #acquisitionentrepreneur #saasgrowth

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Want to build wealth faster? Skip startups. Buy Boring Old Businesses. Here’s why: 1. They’re already making money. 2. They come with customers, systems, and momentum. 3. They’re undervalued – 2.5x profits is standard. 4. SBA loans or seller financing make them accessible. 5. Easy profit boosters: raise prices or add new products. 6. They’re easier to scale than startups. Startups fail 65% of the time within the first 5 years. But "boring" businesses? They’re built to last. Don’t build from scratch. Buy something proven. If you could buy a "boring" business, what type of business would you buy?

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Hey Founders! Not all sales go as planned, in fact many go off track, even after the signed LOI and with parties on both sides aligned. Dealing with hiccups 😬 is as much a part of the process as getting in sync on price, terms, and timeline to closing. So, when a "busted process" happens, or terminated LOI leads to a need to re-engage other buyers, what's the right play? In our experience it happens more with independent PE firms and #searchfunds, but it happens with big firms and strategic buyers too. Give us a few minutes and we'll give you some ideas to get things back on track. Might make or save you $Millions! Maybe more!!

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I recently saw this metric from Carta’s 1Q24 VC Fund Report, which is very concerning. DPI... is nowhere to be found in earlier vintages that probably should start showing DPI. Funding early-stage projects is great, but ultimately, these venture dollars need to exit their investments and pay back their limited partners. That’s where the metric Distributed to Paid-In Capital (DPI) comes in. While managing a fund, we get interim measures during the life of the fund (e.g. IRR, MOIC), but ultimately, “you can’t eat IRR.” If you want to build a lasting venture capital organization, you need to start showing DPI for your fund. Keep in mind that this is traditional VC data from Carta, and is not strictly crypto venture. Crypto venture tends to get liquidity earlier (tokens) and things tend to go parabolic sooner (faster, more unicorns) - but I’d wager that the data here is somewhat similar for Crypto VCs… Not as much DPI as there should be from these earlier vintages. Read the full article, as well as a recap of all the crypto fundraising rounds for August, here: https://lnkd.in/g3eVJ-iF

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https://buff.ly/46dCF4M A Comprehensive Guide for Pitch Decks (Investor Deck) Versions provides valuable insights into crafting effective presentations for potential investors. This resource covers essential elements like market analysis, financial projections, and competitive landscape assessment. It emphasizes the importance of clear communication and compelling storytelling to engage investors. Additionally, it offers tips on structuring the deck for maximum impact, utilizing visuals effectively, and tailoring the content to the target audience. Understanding these principles can significantly increase the chances of securing funding for your business. #PitchDecks #InvestorRelations

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Relative to yesterday's golf match between leading PGA Tour and LIV Golf players, the winners received $10 million in Crypto.com's Crono utility cryptocurrency. What are the uses of Crono? … Cronos (CRO) is a cryptocurrency token that has multiple uses within the Crypto.com ecosystem: Transaction fees: CRO can be used to pay for fees on the Crypto.com platform and the Cronos Chain Staking: Users can stake CRO to earn rewards like higher cashback, discounts, and voting rights DeFi features: CRO holders can access decentralized finance (DeFi) features and services Store of value: CRO can be used as a store of value that's backed by the success of the Crypto.com platform Governance: CRO holders can participate in governance decisions Asset transfers: CRO can be used to facilitate asset transfers between Cronos dApps CRO is the native token of the Cronos blockchain network, which is a sidechain of the Crypto.org Chain. CRO is also supported by Ethereum's ERC-20. You can deposit and withdraw CRO through the Crypto.com app. When trading or transferring CRO within the Crypto.com ecosystem, you don't need to consider the network type. However, you will need to choose the network type when depositing or withdrawing from external wallets. With the upcoming administration change favoring cryptocurrencies, will we see a resurgence of utility cryptocurrency... thoughts? #crypto.com #cryptocurrencies #cronos

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💰Contour Venture Partners Raises $42M for Fifth Fund 💼 Introduction: Contour Venture Partners, a New York-based seed investor known for early investments in companies like Datadog and Movable Ink, has raised $42 million for its fifth fund. The firm is targeting $90 million for this flagship fund and has been actively fundraising since May 2023. 💡Key Points: - **Fundraising Progress**: The firm closed on $42 million from 64 backers, aiming for a total of $90 million. It had previously raised $20 million as part of a parallel fund. - **Market Context**: Fundraising has been challenging for venture funds recently, with overall venture fundraising down more than 50% last year compared to 2022’s record-breaking numbers. 📝Investment Strategy: - **Check Sizes and Focus**: Contour writes checks between $500,000 and $1.5 million, primarily leading rounds in seed and early-stage companies. It focuses on sectors like SaaS, digital media, and financial services, with a preference for companies based in New York or the Northeast. - **Track Record**: Despite not having a massive war chest, Contour has a strong investment track record. Notable successes include:  - Datadog: Early investment in 2011, which IPO'd in 2019 with a $7.8 billion valuation.  - OnDeck: Invested in 2006, went public in 2014 with a $1.3 billion valuation.  -Pendo: Active portfolio company, raised over $460 million, valued at $2.6 billion.  - Movable Ink: Content personalization startup, raised nearly $100 million, valued at $1.3 billion. 👩‍👩‍👧‍👦Firm Background: - **Founders and Leadership**: Contour was founded in 2005 by Matt G. and Bob Greene, who continue to lead the firm. - **Capital Raised**: Over its nearly 20-year history, the firm has raised more than $370 million across four flagship funds and three opportunity funds. 🕯Conclusion: Contour Venture Partners continues to make significant strides with its fifth fund, demonstrating resilience and strategic prowess in a challenging fundraising environment reported TechCrunch. ✅ Looking to raise capital for your #VCfund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VentureCapital #ContourVenturePartners #StartupFunding #Datadog #MovableInk #InvestmentStrategy #SeedFunding #TechInvesting

🔎Investing in Deep Tech? Not yet...🤦‍♂️ Check below why you should consider investing in Deep Tech startups and VC funds🤝 💡Hint: Deeptech VCs achieved an IRR of 17% in comparison to traditional Tech VCs IRR of 10%, according to a McKinsey & Company survey of 115 Deeptech VCs and 1,572 traditional Tech VC funds Thanks to Francesco Perticarari for sharing ✅ Looking to invest your capital into #VC funds?   🤝 Need warm #GP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ G+QUANT's link for inquiries: https://lnkd.in/gjC_EuTE     #VentureCapital #VentureFunding #VentureDebt #Fundraising #Innovation #Technology #Entrepreneurship #Investing #Network #Investors #LPs #GPs #EmergingManagers #FamilyOffice #Markets #Economy #Business #Founders #Startups #StartupFunding #ai #artificialintelligence #unicorn #secondaries #secondarydeals

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You are missing the point. You will never get funded by a VC. Why? VC firms want: 100X return on Seed investments. 15X return on Series A funding. 5X return on late-stage funding. All in 5 years. Why? 65% of VC backed companies fail to return their original investment. 50% of VC backed companies fail to return ANY invested capital. They go out of business. You need to show your competition is making these returns and why you will be able to. Saying you can or showing projections won't work. REG D or REG A+ offer a better alternative. Contact us today. Discover your options. We advise companies raising $10 million or more and where to find the money. Are you chasing the VC dream?

Fundraise Model vs. Operating Model... what's the difference? ~~~ 📌𝗧𝗼𝗱𝗮𝘆'𝘀 𝗔𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁: Learn to build an Operating Model here: https://bit.ly/4gxezGY ~~~ 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗲 𝗠𝗼𝗱𝗲𝗹 A snapshot of a company's financial needs and potential uses of funds, attracting investors with clear info on funding rounds, valuation, and projected returns. Ideal for short to medium-term plans. Often-times I'll build a model like this, see how much the cash goes negative, and that becomes the target funding amount (plus a cushion). 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗠𝗼𝗱𝗲𝗹 A company's financial roadmap, forecasting performance with detailed projections of revenues, expenses, and capital expenditures. Mainly for internal use, assisting in decision-making over medium to long-term horizons. This is the model used during "Budget Season." 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 Fundraise Models: funding levels and exit strategies Operating Models: growth rates, cost structures, and market conditions. 𝗭𝗼𝗼𝗺𝗶𝗻𝗴 𝗢𝘂𝘁 Fundraise Models are high-level and investor-focused, while Operating Models are detailed and internally focused. However, I've seen Operating Models "morph" into Fundraise Models and vice versa. I generally prefer to build an Operating Model that has fundraising functionality (because someone always asks for more detail on the operations). Also, when it comes to returns, I've found most investors prefer to calculate that figure independently of what I show in the model, and as such, the "Returns Section" doesn't hold as much weight as you might think. Rather, I've found investors want to gain comfort around the core Operations. ~~~ 👋 Hey, I'm Chris Reilly, and I teach Financial Modeling based on actual Private Equity and FP&A experience. 📌 See Financial Modeling Courses 👉 https://lnkd.in/eG_uVhsE

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Can your Micro SaaS business afford to buy itself at the valuation you have in mind? Here's why this question holds a key to your valuation calculus. Most Micro SaaS buyers in the $500,000 to $2 million valuation range use SBA loans, which come with specific requirements. The SBA requires a Debt Service Coverage Ratio (DSCR) of 1.25, meaning the firm needs $1.25 of income for every $1 of expected debt payments. Does your Micro SaaS firm generate enough income to cover the loan needed to buy the business at $X valuation? As the valuation rises, so do the loan and debt payments. At some point, the valuation requires a loan that breaks the DSCR requirements based on current income. The upper limit of a Micro SaaS valuation is ultimately determined by the maximum loan a buyer can secure based on the company's income. To simplify things, check out the simple valuation calculator below in 1st comment 👇 #Acquisitionentrepreneur #microsaas

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If you're an emerging fund manager, a robust and efficient co-investment programs is critical to get right. Many LPs expect it. When done right, a strong co-investment program is a win-win-win. However, if done wrong (without a regimented timeline and process) there's a huge margin for error to upset entrepreneurs. I can share a thing or two from what we learned building Fifth Wall: In the early days, we hardwired a co-investment program into our funds, meaning that if you invested a certain amount of capital, you got priority access to co-investment opportunities. This strategy is even more important today than when we started the firm in 2016, because LPs are increasingly looking at venture capital funds as strategic investments to source deal flow. However, there's a huge margin for error if you don't run a regimented process. Without arming LPs with due diligence materials and adhering to a strict timeline, VCs run the risk of irritating the startup in question by delaying closings or not being able to offer an entrepreneur certainty around how much capital they're bringing to the table. Your co-investment program could be hugely successful if you get it right at the outset. I'm very glad we did, and it's something we've continued to double down on as the firm has grown and we've brought more investors and portfolio companies into our network. #venturecapital #lessonslearned

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PitchBook's projects that 2024 will revert to pre-pandemic mean #VC #fundraising levels ($60B-90B), raising their base case from $67B to $79B for year end 2024. This is good news for #emergingmanagers who are commanding a disproportionate share of new VC funds raised, and will reap the rewards of the slow motion price correction going on in early to late stage VC. #venturecapital #pe #alternatives #alllocators #LPs #TVPI #DPI #fundraising

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The Q2 2024 PitchBook-National Venture Capital Association Venture Monitor provides critical insights into the current market dynamics. Here are some key positive and not-so-positive deductions from the report. Positive Deductions/Insights: 📈 Increased Deal Activity: "Deal activity expanded for the third straight quarter, with $55.6 billion invested across 4,226 deals, the highest since Q2 2022." 🤖 Growth in AI Investments: "AI and ML sectors saw substantial deal value, driven by megadeals in AI infrastructure, signaling strong investor interest in cutting-edge technologies." 🚀 Improvement in Exit Activity: "Despite challenges, the IPO market showed signs of recovery with successful high-profile listings, indicating a potential rebound in public market exits." 💰 Larger Deal Sizes: "The trend toward larger deal sizes, particularly in early-stage investments, reflects a premium on quality and promising growth trajectories." 🔄 Increased Secondary Market Activity: "There has been a notable rise in secondary market activity, providing alternative liquidity options for investors and startups." Not-So-Positive Deductions/Insights: 🚧 Ongoing Exit Challenges: "The exit environment remains difficult, with less than $30 billion in exit value generated in Q2, continuing the trend of low liquidity." 📉 High Down Round Frequency: "Down rounds represented 35-40% of Series C and later raises, indicating continued valuation pressures on mature startups." 🏦 Venture Debt Tightening: "Rising interest rates and recent banking challenges have tightened the venture debt market, making it harder for startups to secure additional funding." ⏳ Investor Caution: "VCs have slowed their investment pace, conducting thorough due diligence and being highly selective, which has lengthened the time to close deals." 💸 Decline in Fundraising: "The annualized run rate of VC fundraising in 2024 dropped to the $35-40 billion range, roughly half of 2023's pace, reflecting a challenging fundraising environment." #VentureCapital #Startups #AI #InvestmentTrends #Funding #MergersAndAcquisitions #VCInsights #MarketTrends #SeedFunding https://lnkd.in/ghNBfT6X

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Thanks, Axial, for your findings. I'd rank the Management Team high in the business description. As investors, we are buying their core competencies, track record, market position, and strategic fit. #privateequity #buyout #independentsponsor #growthequity #food #beverage #CPG #healthwellness

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"The trend is still the same from 3 years ago. The Upper Middle class is being pushed into the middle class. This means the true “Upper Middle Class”, is going to become small business owners. The only difference between upper middle and upper class will be the successes at scaling, inheritance and some odd ball incredible investors. Considering that the vast majority of Wealth Management clients are all small business owners, the answer is in front of you (statistically). Fade at Your Own Risk: You have all the numbers in front of you. We don’t sell dreams of “guaranteed riches”. We only provide the highest *probability* way to make it big. That’s the best you can do: play the odds. Besides, even if you mess up, Thailand and Poland are always there." https://lnkd.in/g88YVQfS

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