Up and Running

JULY 2, 2014

of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. When fundraising for a startup, all investors dilute as additional investors join in on the deal. The deal we made with him was he’d get 33.3%

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

FEBRUARY 13, 2013

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic.

Government 230

Government Equity Cost SBIR 230

David Teten

AUGUST 19, 2019

In addition, I’ve noted a few multi-product lending firms, e.g., Kapitus and United Capital Source , which provide RBI as one of many structural options to companies seeking capital. . We have a special program if you are pre-seed and need product development. Repaid 12-36 months with ability to prepay at reduced cost.

Revenue 60

Revenue Technical Review Software Review Equity 60

Mike Michalowicz

OCTOBER 1, 2022

Business check point: Are you diversifying your offering, or diluting your company’s impact? Sometimes the more offerings you provide, the more risk for brand dilution, which ends up weakening your business. Sometimes the more offerings you provide, the more risk for brand dilution, which ends up weakening your business.

Dilution 78

Dilution Reputation Product Development Community 78

Both Sides of the Table

FEBRUARY 17, 2011

For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. When you see evidence that there is this so called “product / market fit&# then you may be ready for larger amounts of capital. 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Startup Professionals Musings

MAY 19, 2014

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic.

Seed Money 242

Seed Money SBIR Dilution Government 242

Berkonomics

MAY 13, 2021

There is a fine line between loading the company with too much debt and diluting the shareholders too early with additional equity investments. Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing.

Dilution 62

Dilution Equity Channel Product Development 62

Gust

MAY 11, 2014

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic.

Seed Money 164

Seed Money SBIR Dilution Government 164

Startup Professionals Musings

JANUARY 2, 2011

I applaud the initiative, and encourage startups in this direction, but there are costs. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. Professional help costs money. To the investors, it means less dilution and lower overall risk.

Government 221

Government SBIR Dilution Database 221

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Your future rounds should be at higher valuations if you meet your plan, making dilution of your equity less onerous at that time. Projections for your future.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Berkonomics

OCTOBER 30, 2014

loading the company with too much debt, and diluting the shareholders too early with additional equity investments. Process: Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing. There is a fine line between.

Dilution 94

Dilution Equity Channel Product Development 94

VC Cafe

FEBRUARY 27, 2024

To reduce the impact of dilution, the expectation is that startup valuation should more or less double between the pre-seed to the seed, and seed to series A (ideally backed by reasonable traction/ revenue multiples). That’s yet another reason for micro funds to move earlier in the fundraising timeline.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Startup Lessons Learned

AUGUST 24, 2009

As the costs of production fall, it’s getting easier and easier to send in a proposal or even a complete work. When I reviewed a recent product development book, it immediately shot up to Amazon sales rank 300. And as everyone’s attention starts to focus on those same indicators, their value is being diluted.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

ConversionXL

AUGUST 30, 2018

It slows product development. It costs money. It’s likely to be related to improving revenues, reducing costs, increasing the number of new customers, increasing the sales from existing customers, or increasing shareholder value. Encourage anyone involved in product development to observe in-person user testing sessions.

Design 111

Design Framework Product Development Technical Review 111

Startup Lessons Learned

JUNE 15, 2009

In practice, how developers respond to this dilemma is determined by their incentives, which are driven by the culture of their team. Who will ultimately bear the cost of their mistakes? One of the distinctions that has helped at the executive level is to stress that you're reducing the COST of failure, rather then its PROBABILITY.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

Seeing Both Sides

NOVEMBER 26, 2012

Adding some debt onto your balance sheet will lower your cost of capital and your dilution, which is better for existing investors and the management team. In other words, being able to efficiently access the capital markets is as core to business-building as product management, go to market and your profit formula.

Balance Sheet 42

Balance Sheet Entrepreneur Dilution Portfolio 42

K9 Ventures

OCTOBER 10, 2017

Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Those times are long gone.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Startup Lessons Learned

AUGUST 14, 2013

It would be a blanket approach and, ultimately as you suggested, dilute the messaging and demonstrate a lack of focus. A content-first approach is a lower-cost, lower-risk way of achieving the same. A content-first approach is a lower-cost, lower-risk way of achieving the same. Steph: For me, it leads. Do they ask questions?

Lean 167

Lean Conversion Audience Design 167

Both Sides of the Table

APRIL 27, 2010

I learned how to integrate customers into our product development process. I learned how to get press coverage when we were no longer “hot.&# I learned how to manage costs effectively. There is a high probability that the person you’re hiring will leave you within 18 months. It’s a subjective topic.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

The Next Web

OCTOBER 3, 2012

I have heard many founders — even in the first few months of product development — expect to raise seed rounds, pay themselves salaries, etc. This seems like a straightforward statement, yet many founders I have met don’t seem to make the connection. This simply is not the right attitude.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

David Teten

OCTOBER 1, 2015

At the same time, a direct equity investment (one where the dev shop acquires a share in the company immediately) puts the founders in a potentially uneasy position of having to dilute their company before a product is built. Second, the company must eventually own the product development and maintenance functions in-house.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

maplebutter.com

JANUARY 8, 2013

what are the most crucial steps to be taken by a new tech startup when outsourcing major part of the tech to IT firms or outsourcing “product development” eg new social media website project? Near shoring development with your team (ex: your team is based in Canada / India) is cool, but not outsourcing. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Seeing Both Sides

JANUARY 13, 2015

People: founder-run and trying to recruit amazing technical talent (the product development team is a huge priority at this stage) and integrate a few senior managers to help prepare the company for scale - which leads to cultural clashes and communication challenges. The first version of the go to market team is hired (i.e.,

Mezzanine 20

Mezzanine IPO Finance Business Model 20