Startup Professionals Musings

OCTOBER 19, 2015

Outside investors are most interested in scaling a proven business model, not research and development. Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. Most founders bootstrap product development. Fabulous solutions require great technology.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Tim Keane

MARCH 9, 2011

Can you bootstrap your way to positive cash flow?   If the answer is relatively soon, then bootstrapping is a very serious consideration.    Even if it isn’t soon, early bootstrapping can reduce risk and increase chances for success, resulting in more aligned interests for entrepreneurs and investors.

Finance 83

Finance Bootstrapping Startup Equity 83

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

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Customer San Francisco Lean Hockey Stick 167

Startup Professionals Musings

APRIL 25, 2016

On the other hand, if you are a new entrepreneur, a well-written and complete business plan demonstrates that you understand the issues and have a real plan for execution. Team not a good match for the challenge. Revenue and profit projections are not credible. Outside investors bet more on the team than the solution.

Intellectual Property 120

Intellectual Property Accredited Investor Angel Investor Reputation 120

The Entrepreneurial Mind

AUGUST 16, 2011

Bootstrapping is the name of the game for most startups. By keeping their expenses low, particularly overhead costs, entrepreneurs are able to start businesses with limited initial funding. This stage of development usually involves two major changes: hiring employees and moving into a legitimate space for the business.

Bootstrapping 72

Bootstrapping Cofounder Salary Business Model 72