.Net Cost Customer Seed Money 
Both Sides of the Table
DECEMBER 27, 2011
If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.
Both Sides of the Table
JANUARY 5, 2010
Partners in VC funds only wanted to fund entrepreneurs who had a certain percentage of their net worth tied up in their venture. VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. That’s hard core. Not my problem.
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Version One Ventures
JULY 22, 2014
The ability to raise money no longer determines one’s fate. With lowered costs to build and run websites, acquire and retain users, virtually anybody can pick up coding and start a tech company. First, there will be a consolidation in the accelerator space, with the net effect of reducing the number of available spaces for start-ups.
Both Sides of the Table
JUNE 17, 2017
If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. Do 20% of the customers make 80% of the revenue or do the top 3 customers represent 80% of the revenue. Is it one product line or multiple?
Berkonomics
MARCH 30, 2012
Many of those investors, individual and institutional, are still licking those wounds; and as a result, investors today want to see a working business model, and customers that are willing to spend good money for your specific solution. Crowd Funding: The Internet is at work here, especially for obtaining early stager seed money.
Both Sides of the Table
SEPTEMBER 2, 2009
The net effect for [my company] for example is we are now doing reasonably well. I raised $500k in seed money to start the company. The very modest salary that I drew didn’t come anywhere near meeting my monthly costs so I had to eat into savings. At some point, this breaks if their isn’t an exit or IPO.
www.paulgraham.com
APRIL 28, 2010
It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.
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