article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

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. They both raised angel / seed money of $1.5 Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418
article thumbnail

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.

Insiders

Sign Up for our Newsletter

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

article thumbnail

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. It will just be leading you down the wrong track.

Finance 167
article thumbnail

The Top 3 Financial Perks of Launching a Startup Company During College

The Startup Magazine

However, the beauty of being in college is that it’s a safety net. In return, you may be able to get your hands on some seed money for your college startup. Many will sit on the fence pondering if they can manage the added pressure of a college startup with exams looming. You just need to go out and look for them. .

article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

This is not atypical for “middle men” who often take 15–30% of the value of the sale If you’re shaking your head and thinking, “duh” I promise you that even some of the most sophisticated people I know get off track on this issue of “gross revenue” versus “net revenue.” They both raised angel / seed money of $1.5

article thumbnail

Entrepreneurs: The Funding Landscape Has Changed.

Berkonomics

Crowd Funding: The Internet is at work here, especially for obtaining early stager seed money. An entrepreneur utilizes online communities to solicit pledges of small amounts of money from individuals who are typically not professional financiers.

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. Founders however are asked to take low salaries and never really get back the time they worked for free. At some point, this breaks if their isn’t an exit or IPO.

Founder 329