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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
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

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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What every entrepreneur should know about financing right now

Version One Ventures

First, there will be a consolidation in the accelerator space, with the net effect of reducing the number of available spaces for start-ups. And, we should expect angel activity to drop as new angels discover that returns from their seed investments aren’t so easy to come by. Is your opportunity at least $100M?

Finance 167
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Should Startups Care About Profitability?

Both Sides of the Table

I want to understand how many units the company is selling, whether this is increasing over time and how well they’re doing at retaining the customers that they do acquire. 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

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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.

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

pandodaily.com

If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. See those things around your legs, cloud customer? Entrepreneurs are survivors by nature. Source AP via Twitter ]. - November 29, 2012.

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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