Remove .Net Remove Customer Remove Employee Remove Seed Money
article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you had huge customer growth but just didn’t focus on revenue that’s a different story. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year.

Startup 418
article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Do 20% of the customers make 80% of the revenue or do the top 3 customers represent 80% of the revenue. They both raised angel / seed money of $1.5

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Entrepreneurs: The Funding Landscape Has Changed.

Berkonomics

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.

article thumbnail

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

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 company did well in 2006 as we delivered a phenomenal product that got much industry acclaim at conferences and with initial customers. I think it breaks for most people after 3-4 years.

Founder 329
article thumbnail

How to Fund a Startup

www.paulgraham.com

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.

article thumbnail

The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

Meanwhile, the rash of early liquidity and recent IPOs — unsatisfying as they were — gave liquidity to thousands of employees at large companies, and a subset of those made very real money. If you are raising a seed round now, there are a few things you can do to protect yourself. Source AP via Twitter ]. -