Both Sides of the Table

SEPTEMBER 15, 2022

The beauty of these businesses that weren’t immediate momentum is that they didn’t raise as much capital (so neither we nor the founders had to take the extra dilution), they took the time to develop true IP that is hard to replicate, they often only attracted 1 or 2 strong competitors and we may deliver more value from this cohort than even our up-and-to-the-right (..)

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Startup Professionals Musings

APRIL 27, 2019

It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Product development chasm. Another common chasm is never-ending product development. Lots of people still believe the major cost of a new product is development.

Technical Review 255

Technical Review Dilution Early Stage Product Development 255

Startup Lessons Learned

JULY 5, 2010

I believe it is the best introduction to Customer Development you can buy. As all of you know, Steve Blank is the progenitor of Customer Development and author of The Four Steps to the Epiphany. I have personally sold many copies of his book, and continue to recommend it as one of the most important books a startup founder can read.

Customer Development 166

Customer Development Developer San Francisco Customer 166

David Teten

DECEMBER 2, 2019

I’m now researching non-dilutive funding for Action Tank , a startup I’m gestating to “Make America Functional Again”. I worked with outsourced research firm Wonder * to identify all of the institutions we could who support tech impact startups with cash and community, and in many cases without dilution. Future Labs Flash Pitch. “For

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

Both Sides of the Table

MAY 9, 2018

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. I developed a list of questions to ask you next time we speak?—?especially

Software Review 381

Software Review Churn Rate Due Diligence New York 381

SoCal CTO

SEPTEMBER 27, 2011

The reality is that an early employee in a pre-funded startup that eventually raises a few rounds of capital will be diluted significantly, is down the line in preference, and will likely be locked up for a while to harvest it. If this is a junior level developer, then likely you can provide significantly less equity.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

The Next Web

OCTOBER 7, 2013

Often difficult to get, the first engineer sets the tone for the rest of the development team. Every time a startup raises capital, all common shareholders are diluted. All of the estimates displayed above are figures prior to any dilution. As stated earlier, investors will dilute ownership upon nearly every round of financing.

Engineer 129

Engineer Dilution Option Pool Vesting 129

VC Cafe

JUNE 10, 2022

As a result, founders are accepting increased dilution of the stakes they hold in their own companies. Interesting developments in AR this week. The first version of its smart glasses (code name Orion) will be distributed to Developers (according to TheVerge ). OpenView report on Product Led Growth.

Valuation 151

Valuation Marketing Venture Capital 151

Startup Professionals Musings

APRIL 23, 2017

It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Product development chasm. Another common chasm is never-ending product development. Lots of people still believe the major cost of a new product is development.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

YoungUpstarts

JANUARY 19, 2015

When you develop the look and feel of your site, try to view it from a disabled person’s point of view. There are organizations that can work with you to develop disabled-friendly websites. Don’t dilute your content. Many website owners make the mistake of diluting their content. Is your website still readable?

Dilution 100

Dilution Web Web Development Flash 100

The Startup Magazine

MARCH 14, 2022

It is here that the groundwork is laid and the business model developed. The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. The journey commences by finding a solution for an everyday problem. At this stage, the idea is pitched mainly to family and friends. 2) Seed funding.

Technical Review 145

Technical Review Due Diligence India Startup 145

David Teten

OCTOBER 1, 2015

Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. Vlad is also the CEO at DarwinApps , a software development shop.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Startup Professionals Musings

DECEMBER 18, 2013

It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Product development chasm. Another common chasm is never-ending product development. Lots of people still believe the major cost of a new product is development.

Entrepreneur 252

Entrepreneur Marketing Technical Review Dilution 252

Startup Professionals Musings

AUGUST 31, 2018

Totally new and risky products will dilute your focus, and may confuse existing customers. We provided an industry-leading graphic development interface, but were not strong on modeling and simulation. Expand your product line, staying close to the core. Another approach is to add services that are related to your current product line.

Angel Investor 167

Angel Investor Dilution Software Review Distribution 167

Startup Professionals Musings

OCTOBER 13, 2021

It’s easy to say “yes” to one more feature request after another, until the potential for real impact gets diluted. Otherwise, your most innovative and disruptive product thinking will be diluted and lost, killing your dream of a better world. Now is the time to develop a new mindset and stick to it.

Dilution 334

Dilution Metrics Acquisition Revenue 334

Both Sides of the Table

FEBRUARY 6, 2013

it’s the most expensive dilution you’ll ever face. Early-stage companies shouldn’t: outsource core product development, have consulting firms build it for them to speed up time-to-market, shouldn’t hire too many business people until product is complete and early product/market fit tested.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

Startup Professionals Musings

DECEMBER 16, 2017

Because unsuccessful startups tend to fail early, and big successful exits tend to take a long time to develop, graphing growth follows the classic J-curve. Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution.

Angel Investor 190

Angel Investor Accredited Investor IRR Angel Groups 190

Startup Professionals Musings

NOVEMBER 10, 2012

It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Product development chasm. Another common chasm is never-ending product development. Lots of people still believe the major cost of a new product is development.

Startup 254

Startup Technical Review Dilution Early Stage 254

Startup Professionals Musings

APRIL 9, 2016

As a former developer, experienced technical entrepreneur, and an advisor to many startups, I recommend that every technical startup adopt and live by some strict strategic and organizational rules to counteract the urge and risks of feature creep. Developers should get the last word on implementation, sizing and duration alternatives.

Product 120

Product Coder Dilution Agile 120

ConversionXL

JULY 22, 2021

Identifying and merging content targeting the same or similar keywords; Removing duplicate content that dilutes importance, and; Improving metadata so that users see what they’re looking for in search engine results pages (SERPs). While these do need attention, the problem lies with your hosting provider or web developer, not your website.

Technical Review 162

Technical Review SEO Software Review XML 162

Startup Professionals Musings

JULY 31, 2012

If you already have some technical people on board, like software developers, and need a new manager, you supply the candidates based on credentials, and let them do initial interviews and make recommendations. Focus on finding the right partner to double your strength rather than dilute it. Outsource your technical requirements.

Technical Review 230

Technical Review Technology Founder Management 230

Up and Running

JULY 2, 2014

We developed a kick-ass investor pitch and we started pitching it to family, friends, angel investors, and even venture capitalists for feedback. of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. We set off to raise our money.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

DECEMBER 11, 2022

Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest. Solution development undefined or incomplete. They are not interested in research and development, or funding at the idea stage. Naïve expectations on funding terms and process.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Both Sides of the Table

AUGUST 3, 2010

I can save tons of development time and I think I can buy it for all equity. How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. A close friend of mine in LA who is 3 years into his startup called me about 2.5 Most likely you’ll fail – most companies do.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

OCTOBER 17, 2022

This can cause early investor dilution, lower ultimate returns or leave the startup stranded. Yet, it is important to remember that the most optimistic super angel is looking for a proven business model, rather than research and development, or just an idea. Marty Zwilling.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Up and Running

JULY 1, 2020

And using your business plan template to develop an expansion plan increases your odds of success and allows you to avoid bad investments. Throughout my 25-year career, I’ve written business plans or have been a part of teams developing plans for business expansions. A good business plan is critical to starting a successful business.

Business Plan 152

Business Plan Forecast Operations Dilution 152

Startup Professionals Musings

MAY 9, 2014

Because unsuccessful startups tend to fail early, and big successful exits tend to take a long time to develop, graphing growth follows the classic J-curve. Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

Startup Professionals Musings

SEPTEMBER 13, 2011

It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Product development chasm. Another common chasm is never-ending product development. Lots of people still believe the major cost of a new product is development.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

YoungUpstarts

APRIL 19, 2012

When not approached carefully, growth can destroy value as it outstrips a company’s managerial capacity, processes, quality, and financial controls, or substantially dilutes customer value propositions. Their ‘be better’ focus was the underpinning of every growth initiative whether it was top-line, bottom-line, or developing new concepts.

Dilution 209

Dilution Virginia Management Washington 209

Startup Professionals Musings

MAY 11, 2011

If you already have some technical people on board, like software developers, and need a new manager, you supply the candidates based on credentials, and let them do initial interviews and make recommendations. Focus on finding the right partner to double your strength rather than dilute it. Outsource your technical requirements.

Technical Review 236

Technical Review Partner Entrepreneur Architecture 236

Both Sides of the Table

SEPTEMBER 5, 2012

In a standard VC term sheet there is a standard term called an “anti dilution provision” and they are in nearly 100% of deals. It has nowhere near the same dilutive effects as a full ratchet except in extreme edge cases. But my $500k, while only buying 10% of the company (and now diluted down to 7.5%

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Startup Professionals Musings

OCTOBER 7, 2022

Professional investors expect to see your top three use of funds categories, and how these relate to scaling the business, rather than initial development. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. Are you flexible on the terms of the investment?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

ReadWriteStart

JANUARY 13, 2024

By fostering partnerships, developing unique products and services, and continuously refining their business models , these startups can navigate the market challenges and prove their value to potential investors and customers.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

A Smart Bear: Startups and Marketing for Geeks

MARCH 1, 2010

Hanging your hat on just one advantage that you can own completely is stronger than diluting your message across many advantages. When you have a problem, we connect you directly with developers instead of hiding behind off-shore Level 1 support. Don't dilute your message. And it's not just in face-to-face sales calls either.

Open Source 239

Open Source Dilution Software Developers Software Development 239

The Next Web

NOVEMBER 20, 2013

With all other things equal, that means that a 50/50 split between two co-founders (evenly split if there are more than two), or a 66/33 split based on the premium for coming up with the original idea, and for starting the initial development efforts and sourcing the original team. Who is funding the business?

Cofounder 136

Cofounder Equity Founder Seed Stage 136

YoungUpstarts

JULY 31, 2019

But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale. They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Both Sides of the Table

AUGUST 14, 2017

And of course we help with business development introductions and with fund raising events. Often we are asked to get involved in executive-level recruiting. Board work does involve a lot of conflict at moments throughout the company.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217