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A heartbreaking story about time and money.

Berkonomics

How about young or pre-revenue companies? Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. Lots of good jobs were lost and many investors including me were left with the question.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. Equity investors. The third source of funding is from equity investors.

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Wasted time is money lost.

Berkonomics

Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding.

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Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.

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Wasted time is money lost. (And another story of lost opportunity.)

Berkonomics

Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. Lots of good jobs were lost and many investors including myself were left with the question. Hedging against downturns The fight for quality.

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How the pre-seed round made a comeback in 2024

VC Cafe

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size?

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Need money? Read this!

Berkonomics

Do not expect grand valuations of your enterprise from these professional angels. Professional angels, often organized into groups, usually invest from $100,000 to $1 million in a young enterprise. Often private equity investors will want control of the business as well.