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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

Lately I’ve been having to say things I thought I’d never have to remind people, like, “getting to positive gross margin in several territories is a very low bar to claim success” or “profitable excluding marketing costs” is not actually a real thing. But not doing basic research makes no sense.

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How to find funding for your hardware startup while we’re waiting for the hardware revolution

Version One Ventures

Hardware requires time, money, and inventory. As a result, most venture capitalists are reluctant to touch hardware projects, opting for the lower costs and smaller risks of software. Crowdfunding sites like Kickstarter and my portfolio company Indiegogo are helping fill the financing void for hardware projects.

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. . ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Paying lawyers $50,000 when you are raising $500,000 doesn’t work.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. I want our associate to have empathy for the customers we serve — our portfolio companies. I’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”.

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Startup Business Investments Around The World

YoungUpstarts

Over time, as you scale your operations, you may need to source additional funding from venture capitalists to mitigate high production costs or limited revenue. Rationale for Startup Investments.

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A conversation with Scott Kupor of Andreessen Horowitz, author and speaker at Lean Startup Conference 2019

Startup Lessons Learned

And while it can often be the case that “lemons ripen early” (meaning that the unsuccessful companies fail early in a fund’s lifecycle), the harvest cycle for the winners in the portfolio can take what sometimes feels like an eternity. First, the introduction of seed money as an institutional form of capital.

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Tiered Valuation Caps

Austin Startup

This post assumes that, for a company’s early seed round, they’ve decided to use convertible notes or SAFEs; because the majority of startups do. SAFEs and Notes are optimized for speed and simplicity, with a cost of future uncertainty and dilution. They have their downsides, which are discussed in some of the above links.