Both Sides of the Table
MARCH 25, 2016
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.
Both Sides of the Table
DECEMBER 27, 2011
If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.
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Both Sides of the Table
OCTOBER 25, 2009
For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.
Both Sides of the Table
JANUARY 5, 2010
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’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”. Servers, databases, bandwidth – they’re all virtual now. You have kids, a mortgage, MBA debt?
Both Sides of the Table
JUNE 17, 2017
If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you. They both raised angel / seed money of $1.5 What did they actually do?
Both Sides of the Table
MARCH 6, 2015
I was out to raise my first seed money in my second startup of $500,000. If you want to understand the software trend that drove the creation of the seed-stage VC phenomenon I wrote about it that linked blog post but in short: cloud computing drove down the cost to create startups enabling a new category of investor.
Both Sides of the Table
AUGUST 1, 2010
I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. That would run the risk of the “ sunk cost fallacy that we all learned in basic economics (or if you didn’t make sure to read Fred Wilson’s primer on the topic. Ask their strategy.
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