Jason Pratts

Founders and investors: This is the easiest way to pay less taxes 🤠 Put your shares / carried interest into a 𝐍𝐞𝐯𝐚𝐝𝐚 𝐧𝐨𝐧-𝐠𝐫𝐚𝐧𝐭𝐨𝐫 𝐃𝐲𝐧𝐚𝐬𝐭𝐲 𝐭𝐫𝐮𝐬𝐭. *you don’t need to live in Nevada to do this. You just need a Nevada trustee. With this setup you can eliminate millions in potential taxes: ➡️ ZERO estate tax for up to 365 years (40%) ➡️ ZERO state taxes ➡️ ZERO federal taxes (when qsbs is applicable) Plus you get bulletproof asset protection (Nevada is ranked #1 for asset protection). If you are interested, shoot me a message. or check us out at Dynasty!

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The Information is out with breaking news about Bolt finalizing a $450M round at a whopping $14B valuation for their Series F. This is complete with Ryan Breslow returning as the CEO. While this fundraising is obviously impressive, the ultimatum is that existing investors "Have to buy at twice their existing positions at the higher valuation." Most egregious is their written threat of forcing the existing Preferred Shares into $0.01 common shares if they do not." It will be interesting to see how BlackRock and General Atlantic respond to this direct threat. #management #venturecapital #privateequity #fintech #capitalmarkets https://lnkd.in/eZZec5kT

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Today's Boring Business (Our First on BizBuySell): - 50+ Year Auto Repair & Service Shop - $300K Cashflow - North Florida - Day 26 of "50 States In 50 Days" Disclaimer: SMB PE LLC will receive fees in a successful sale as we represent the underlying deal. This is our first deal on BizBuySell. What Do They Do? 1. Family owned business with 60+ years of operating history 2. General service, electrical diagnostics, inspections, transmissions 3. Revenue 30-40% routine services and 60-70% high-margin jobs 4. Excellent staff in place and loyal, repeat customer base 5. Strategically positioned in high-visibility area Northeast Florida Highlights: 1. Long time history of profitability, Owner retiring 2. High-end auto with Average Repair Order (ARO) 30%+ vs market 3. Little to no professional marketing completed to-date, word of mouth Risks/ Concerns: 1. Owner-Dependency: How will Owner leaving impact business 2. Team has great people in place to help with transition, any at risk? 3. Owner owns underlying Real Estate, have to negotiate terms #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party.

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Don’t discount your product before selling your business. Launching a massive sale of annual plans is tempting. Big sale = revenue bump = inflated valuation. But buyers see through this and either:  • Add a discount based on recent months  • Don’t touch the business. If it’s something like Black Friday, that’s okay... but it's best to avoid discounts altogether when prepping for a sale. #acquisitions #SaaS #founders

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Attention investors: you can now refer your portfolio companies for qualified small business stock (QSBS) attestations from Carta. The benefit? Potentially paying zero federal capital gains tax on your holdings in these companies, up to 10X of your investment when selling your shares. Plus, peace of mind knowing you can provide an attestation letter in the event of an audit. #investors #QSBS #portfoliocompanies #venturecapital #VCs More here: https://lnkd.in/eshMn_hS

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Today's Boring Biz: Pool Leak Detection Company - $2.3M Revenue - $610K Cashflow - South Carolina - Day 39 of "50 States In 50 Days" Note: We do not represent this deal, highlighting for informational purposes only for viewers What do they do? 1. Leak detection services 2. Electronic detection equipment 3. Pool inspections Investment Highlights 1. Strong market demand 2. Established reputation 3. Business systems in place Investment risks/concerns 1. What is the competition 2. Customer concentration 3. Length of contracts #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner #pool #leakdetection #southcarolina #servicecompany Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party

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Startups, don't let tax season catch you off guard! Even without revenue, filing is essential. Our team at Kruze Consulting has the expertise to guide you through complex tax landscapes. 🧩💼 Explore how professional tax services can save you time and money. Link to the article in the original post of Vanessa Kruze, CPA! #StartupSuccess

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KNOW YOUR REAL BUSINESS ECONOMICS • GAAP Revenue • Cash Flow • Cash • Contribution Margin • CAC • CAC Payback FUNDRAISING: PRESENT & SUBSTANTIATE FINANCIALS • Investor needs to know what your forecasts are • They need to believe them David Weiden, Khosla Ventures

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That's why it's often very difficult to recognize new leaders – their ideas go beyond the conventional frameworks we're accustomed to. Keep your mind open. Don't let yesterday's templates define your future. #Leadership, #Innovation, #OpenMind, #FutureThinking, #venturethinking,   https://lnkd.in/eASPGsuu

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Achieving the ARR Productivity of a $50M+ SaaS Firm Return on Effort: - Pursue operating leverage vs the largest deals. - Aim for maximum profit from every dollar of revenue. Key Metrics: - ARR/FTE: Revenue efficiency per employee. - EBITDA/FTE: Profit efficiency per employee. Micro SaaS Advantage: - Potential for extraordinary return on effort with fewer resources. - Focus on operational leverage to maximize productivity and profit. DM to learn more about achieving high ARR productivity.

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Please... if you’re selling a business, don’t do this. A founder wanted to maximize the sale of his business. He came up with a plan: - Slash marketing & R&D team - Inflate recurring revenue by discounting their annual plan This is a bad plan. Buyers will see right through this with a little due diligence. Instead, do this: - Reduce churn rate - Document & automate operations - Make the business work without you - Clean up your books and records There are concrete steps to make your business worth more at sale. But *hacking* your valuation will hurt you later. #acquisitions #founders #saas

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😱Pretty worrisome for founders, but great news for VCs😎 Fewer startups equate to less work, fewer intro calls, fewer funding opportunities, fewer bad decisions... Where next? #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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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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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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It is a great privledge to be backing Stella Garber for a second time, as well as her sensational co-founders Brian Schmidt and Justin Gallagher. It’s also great to working with Index Ventures again, too. One thing I have learned in my venture career is that humans are lazy, and software that does simple things can feel like magic. Hoop uses AI to automatically harvest to do items from all of your communication channels. Today it’s single player, and in the future it will be your whole team. Read more about why we invested: https://lnkd.in/geTy-kyZ

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💡 Founders, avoid costly payroll mistakes! 💡 Backdating payroll can create serious IRS compliance problems. Trust me, it’s not worth the risk. Instead, use a bonus agreement for when you raise capital to stay compliant. Let’s focus on building our startups, not dealing with IRS headaches. Link to the article in Vanessa Kruze, CPA’s original post. #StartupFinance

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Is it really worth it? Do you even care? The "CAC" customer acquisition costs for a crowdfunding round via REG CF or 506c... It's a number that you get data on as there's years of of it to get a good "par" value of what it will cost to "acquire" an investor lead based on investment amounts and then what the costs are to convert that investor to a signed allocation contract. For instance, in real estate I know that a buyer lead costs $600 and then another $400-800 to convert that lead into a sale, so $1,400 total. If I can earn a $5,000 commission on that lead then it's totally worth it as that's a huge ROI, even it took 6 months in total. Let's say that you're doing a 506c raise and the average CAC for a $10k investor lead is $1,500 bucks plus another $1,500 to convert that lead with a 3 month average sales cycle. You NET $7k based on those numbers, but unlike generating leads for other industries, securities have other upfront costs that need to be factored into the whole raise. So, if it costs you $50k to set up your raise, then you need to include that in your CAC which you can obviously break up over the whole cap table. Now your NET CAC went from $7k to let's say $6k. You spend $4k to get $6k, is that worth it? I think so, but I look at it as an ROI and not as an expense, even though that's exactly what it is. To each their own of course! ***The numbers above are just for reference purposes and are not factual.

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Conventional wisdom says bigger deals equal bigger returns. But does the math back it up? Our analysis shows Micro SaaS firms can outpace larger players re ARR/FTE and EBITDA/FTE, which translates directly to valuation. The key is high-leverage operating models and ruthless efficiency. What’s your take on return on effort in sub-scale SaaS firms?

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Today's Boring Biz (# 126): 20+ Year Cashflowing Car Wash - $260K Cashflow - New Jersey Seller Listed Structure - $850K Revenue - $260K Cashflow - $899K Ask Price - 3.5x Cashflow Multiple What does the company do? 1. Carwash and detail shop 2. Operates with 50 ft tunnel 3. Team of 6 employees Investment highlights 1. 24+ years in operation, North NJ 2. Offering ~33% Seller Financing, 5 Years 7% 3. 19 years remaining on lease Investment risks/concerns 1. Seller in corporate, when did they buy? 2. Why are they a "Motivated Seller"? 3. Condition of car wash site + capex needs Why: How to buy a small business? Note: Not our listing, highlighting this business for informational purposes only. For those who are looking to buy a first small business or better understand high-level math/ framework of how to analyze a small business for sale. #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner #carwash #handcarwash #cardetailing #newjersey Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party.

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