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Should Startups Focus on Profitability or Not?

Both Sides of the Table

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!” If you had huge customer growth but just didn’t focus on revenue that’s a different story. One of them is profitability.

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What every entrepreneur should know about financing right now

Version One Ventures

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' Is your opportunity at least $100M?

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A Year in Review: 2016

Version One Ventures

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. They make their products cheaper and easier to use in order to appeal to more customers. Looking ahead to 2017.

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Should Startups Care About Profitability?

Both Sides of the Table

I want to understand how many units the company is selling, whether this is increasing over time and how well they’re doing at retaining the customers that they do acquire. Do 20% of the customers make 80% of the revenue or do the top 3 customers represent 80% of the revenue. They both raised angel / seed money of $1.5

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Sign up customers who are paying you money for a service you can’t 100% guarantee is going to be operational for the full period that they’re expecting.

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

Startup Lessons Learned

It’s meant to support and grow a business until an “exit” in the form of an IPO, a merger or acquisition, or in less than ideal scenarios, a company shutdown. First, the introduction of seed money as an institutional form of capital. Morgan credit card business to acquire tons of Square customers at a very low cost.

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Gust

Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Sign up customers who are paying you money for a service you can’t 100% guarantee is going to be operational for the full period that they’re expecting. Many times it’s less.

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