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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!” They both raised angel / seed money of $1.5 There are certain topics that even some of the best journalists can’t fully grok.

Startup 418
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Snaptrip case study – Solo founder hypothesis in action

The Equity Kicker

With no team and no technical expertise Matt was planning to find a team and build out some product before starting to raise some seed money. Snaptrip is a weekend and evening business so the demands on your personal life can be quite high. Our unique model allowed him to get started straight away. USER RESEARCH.

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Should Startups Care About Profitability?

Both Sides of the Table

They both raised angel / seed money of $1.5 They hired a biz dev team to work on deals where their product could be embedded in other people’s products as a way to increase customer demand. If there was strong market demand for their product then this investment might pay off handsomely.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

Meanwhile, the rash of early liquidity and recent IPOs — unsatisfying as they were — gave liquidity to thousands of employees at large companies, and a subset of those made very real money. This time around, there has been an explosion at the early stages, and the very late pre-IPO growth stages. November 29, 2012.

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How to Fund a Startup

www.paulgraham.com

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.