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Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Advertising. These Spooky Cinemagraphs Will Radically Change Online Advertising. This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. Parse, one of the most-anticipated startups in Silicon Valley these days , went through Y Combinator last year and raised seed money from Google Ventures , for example.

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How much capital should you raise?

Version One Ventures

A SaaS startup with immediate monetization options usually needs to raise way less capital than an advertising-driven business that can generally only monetize once it reaches a certain scale. Target between 15-25% dilution per round I typically recommend that founders put more emphasis on the quality of investors (i.e.

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How to Start a Startup

www.paulgraham.com

And since a startup thatsucceeds ordinarily makes its founders rich, that implies gettingrich is doable too. A lot ofwould-be startup founders think the key to the whole process is theinitial idea, and from that point all you have to do is execute.Venture capitalists know better. Ideally you want between two and four founders.

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Do the Math

Austin Startup

Every model has a happy outcome when a founder is trying to convince himself or herself, a team, an investor, or even a spouse that the venture ahead is a good idea. If the founders aren’t drawing market salaries, then true profitability may be overstated. But, the manner in which you get paid can swing your valuation considerably.

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Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive. the $190 million).

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

pandodaily.com

“I wouldn’t expect anyone except seed investors to complain about it,” Graham says. “Founders don’t think their problems are due to trends. And in fact, overall trends are a second-order effect for founders.” Sarah Lacy is the founder and editor-in-chief of PandoDaily. Sarah Lacy.

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Figuring Out FourSquare

Seeing Both Sides

Here were some of the takeaways I had from the class discussion framed around three major questions I posed to the students: 1) Why did foursquare succeed as compared to the same founder (Dennis) in a similar venture (Dodgeball) in a different era and as compared to other teams pursuing LBS services in the same era? .

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