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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). I said that at the Founder Showcase, too. and profits!

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. What is your revenue growth rate and what does this imply about your number of months of capital remaining? ” It goes like this: What is your net burn rate?

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@altgate » Blog Archive » Outsourcing For Startups

Altgate

But did you know that founder Markus Frind has just 3 employees for his $10MM+ revenue business? For example, you can barter for a service or you can negotiate payment terms or even equity for service. World class In-house UX is one of the most challenging hires you’ll make. He basically outsources everything. Branding/Copy.

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4 Reasons You Might Not Want to Be VC Funded

Up and Running

Venture capitalists essentially buy equity in your brand, which means they now have a say in how you operate. In 2005, Claus Moseholm co-founded GoViral, a Danish company which specializes in harnessing the internet to promote advertisers’ videos and make them go viral. You give up some control of your company.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

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If, Why, and How Founders Should Hire a “Professional” CEO

Reid Hoffman

I speak from personal experience, since I hired and partnered with a CEO, Jeff Weiner, very successfully at LinkedIn five years after co-founding the company. I co-founded LinkedIn in 2003, and by 2005, after asking myself the key questions about my passion, focus, and commitment, I knew I wanted to bring in a CEO.

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TinySeed Applications Open January 18th

Software By Rob

. “YCombinator for Non-Unicorns” In 2005 YCombinator pioneered the concept of a startup accelerator, running their first batch of 8 companies through a 3-month mentorship program and providing them with $6,000n in funding (where n = the number of founders). And in exchange for this $6k-$18k and mentorship, YC asked for 7% equity.