Customer IPO Revenue Seed Money 
Both Sides of the Table
DECEMBER 27, 2011
I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.
Version One Ventures
JULY 22, 2014
More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. If not, revenue from your customers will be your best source of financing. News Angel investor AngelList Bootstrapping funding Seed money Series A round Startup company venture capital'
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Version One Ventures
DECEMBER 14, 2016
forward revenue in February 2016 (the low), they appreciated by 6% each month for the following six months. At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years. Of course, upcoming IPOs like Snapchat will bring some added excitement to the industry.
Both Sides of the Table
JUNE 17, 2017
70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.
Both Sides of the Table
SEPTEMBER 2, 2009
At some point, this breaks if their isn’t an exit or IPO. We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. Probably revenue based.
www.paulgraham.com
OCTOBER 23, 2010
You need three things to create a successful startup: to start withgood people, to make something customers actually want, and to spendas little money as possible. The woman in charge of sales was so tenacious that I used to feelsorry for potential customers on the phone with her. Paul Erdos wasparticularly good at this.
www.paulgraham.com
APRIL 28, 2010
Once you take money from the generalpublic youre more restricted in what you can do. [ In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem.
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