January, 2013

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How Reed Hastings’ Facebook Status Update Landed Netflix in SEC’s Crosshairs

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Last month, the SEC announced it was taking action regarding Netflix’ (NFLX) securities compliance based on a Facebook status update posted by CEO Reed Hastings. The move came as a shock to many in the tech business community, in which we’ve become accustomed to real-time disclosure by company executives through social media. What could be wrong with more transparency?

SEC 158
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Startups Need the Right Team Mindset to Survive

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Image via Facebook.com. Since the days of Henry Ford, mass production has been the Holy Grail of business, rather than build-to-order. Too many businesses haven’t noticed that we have come full-circle, where mass customization is required now to win. Customers have come to expect immediate and tailor-made responses to their needs, and the businesses that fail to deliver quickly fall behind.

Startup 180
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Build Entrepreneur Credentials Early and Wisely

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Mark Zuckerberg at Harvard via ShinyShiny.tv. Many believe that entrepreneurs are born, not made. While I agree that successful company builders usually have a natural inclination to be entrepreneurs, a good education helps polish that apple. There are people who are natural musicians, but that doesn’t mean we don’t try to teach them music.

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Startup Map & Trends Analysis – December 2012

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December update and insights about new startups: India became second last month as the country with the highest count of new Startups, right below the United States. India’s average position for the year has been fourth, it came up to third in February and between June to August, but only reached second for the first time this past month. Top 5 Us states remained steady this month and were consistent with their yearly averages.

India 171
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The Experience vs. Education Curve in Startups

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Years ago I came across the idea that in entrepreneurship, education and experience contribute to likelihood of success roughly like you see in the chart here. The underlying assumption is that a lot of education makes up for very little experience, and vice-versa. And this is in the context of startups, investment, and entrepreneurship. . I’ve drawn it here MBA style, with a line on two axes, pretty much the way I first saw it, with a smooth curve from one extreme to the other.

Startup 165
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Is the Startups Buzz Dimming?

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Is the bloom off of the startups rose? Two days ago the New York Times published this story about investors getting pickier. I think the NYTimes’ headline is slightly off from the story’s content. It’s not that much about a rocky recent past; it’s more about money being too easy in the recent past, and now, as a natural result, things get tighter because “easy” money doesn’t always mean enough of the due diligence and thought to make good deals.

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7 Startup High Risk Factors That Scare Investors

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Image via Flickr by artemuestra. We all know that every startup is risky. No risk means no reward. Yet every investor has his own “rules of thumb” on what makes a specific startup too high a risk for his investment taste. You need to know these guidelines to set your expectations on funding. Of course, if you intend to fund the business yourself, or have a rich uncle, external investment funding concerns are not a problem.

Russia 186