Startup Professionals Musings

APRIL 12, 2021

For the rest of us, I’ve accumulated the following additional practical strategies for surviving the scale-up challenges, and making your business profitable and sustainable: Enlist an experienced advisor to project real costs. Build your plan around resources you know. Start networking for funding before the crisis.

Dilution 404

Dilution Incubator Bootstrapping Government 404

Startup Professionals Musings

DECEMBER 11, 2022

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. Naïve expectations on funding terms and process. Dysfunctional or non-functional team members.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

SEPTEMBER 13, 2011

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. 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.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

Startup Professionals Musings

AUGUST 27, 2010

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. 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.

Startup 227

Startup Technical Review Dilution Early Stage 227

Both Sides of the Table

SEPTEMBER 25, 2010

I talked about this in my social proof post where I gave some suggestions about how to get the early guys off of the fence. Most early-stage entrepreneurs who have worked with me (either as an angel or as a seed VC) know that I don’t rely at all on the social proof of other investors. When I’m in, I’m in.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Startup Professionals Musings

MARCH 14, 2020

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. Naïve expectations on funding terms and process. Dysfunctional or non-functional team members.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

The Next Web

SEPTEMBER 13, 2013

But the problem with this is that most VCs in the Valley, especially early stage ones, only like to invest in companies that are within driving distance from their offices. In India, the leading firms are slightly more concentrated with Sequoia India , Accel Partners , and Nexus Venture Partners being a cut above the rest.

Asia 132

Asia Silicon Valley India Term Sheet 132

View from Seed

SEPTEMBER 14, 2021

For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Both Sides of the Table

JULY 25, 2010

Rincon is part of the new breed of Seed Stage VCs and with the leadership of Jim Andelman has charted out the most authentic early-stage investment strategy in Southern California. Any SoCal entrepreneur raising early-stage money should put Rincon on their short list.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

View from Seed

SEPTEMBER 14, 2021

For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Startup Professionals Musings

AUGUST 1, 2016

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. Naïve expectations on funding terms and process. Dysfunctional or non-functional team members.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

View from Seed

JANUARY 26, 2016

To ensure you receive the rest, subscribe here. It’s become increasingly common for startups to raise several seed rounds, and this has led to a bifurcation in the seed stage between what are known as “pre-seed” (or “genesis”) and institutional seed rounds.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Transformify

JULY 23, 2018

To boost innovation and SME sector growth, the EU Commission has launched the SME Instrument of the Horizon 2020 program – the largest non-dilutive fund in the world. Why non-dilutive? Remember that the SME Instrument covers 70%, the rest needs to be provided by the startup company. It is a grant, not an equity funding.

Intellectual Property 66

Intellectual Property Angel Investor Dilution Startup 66

Both Sides of the Table

APRIL 3, 2010

So if a VC wants to work with really talented early-stage entrepreneurs there are times where they have to be willing to seed fund them in order to be in the deal. They said that they didn’t want the extra money or dilution. A very well known early stage fund used to have a rule that they didn’t do follow ons.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Genuine VC

FEBRUARY 28, 2011

It is essential that you ask the “number of fully-diluted shares outstanding.” Look how the company views its office space – are you in a dingy warehouse where CEO sits in a cube with the rest of the company without an administrative assistant? Early-Stage. Late-Stage. Senior-level position.

Startup 121

Startup Equity Vesting Salary 121

The Equity Kicker

MAY 14, 2012

However, raising lots of money to buy lots of time is great if you can do it, but for a lot of startups it won’t be possible, at least not without excessive dilution. November – retail partner decision to roll-out product to rest of stores. October – first conversations on the back of marketing launch and early data from pilot.

Finance 118

Finance Valuation Venture Capital Dilution 118

The Next Web

OCTOBER 7, 2013

Often difficult to get, the first engineer sets the tone for the rest of the development team. However, at the very early stage, they are taking as much risk with their future as the founders. Every time a startup raises capital, all common shareholders are diluted. Engineer #1? Converting percents to cents (and dollars).

Engineer 129

Engineer Dilution Option Pool Vesting 129

Up and Running

APRIL 24, 2018

That’s why having a revenue-minded focus from the early stages helps to secure funding. However, you can certainly raise some of the capital through bootstrapping and the rest via seed funding. Bootstrapping or self-funding a healthcare startup is very difficult, as most healthcare starts require considerable investment.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

A Crowded Space

MAY 18, 2017

It rests on a pure mathematical model of picking stocks. Note, these are not necessarily 50X investments because of dilution + follow-on investments at higher valuations, but we’re all quite happy with the returns. That’s a 2.5% chance to unicorndom which is WAY better than industry average. Surely it’s not just luck.

Seed Stage 60

Seed Stage Portfolio Venture Capital Valuation 60

Austin Startup

MARCH 7, 2021

Now the 9th largest economy in the world, it‘s clear that the rest of the world is waking up to the potential in Texas. In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. Each city has its own special character.

Texas 90

Texas San Antonio Houston Dallas 90

venturehacks.com

SEPTEMBER 22, 2011

” Read the rest of The Equity Equation first; it is great. When you evaluate a candidate, ask yourself whether she is likely to increase the next round’s share price (include the dilution of her market rate options). That’s a core argument for early-stage high-value angels, seed funds, and Y Combinator.

Equity 40

Equity Cap Table Valuation RSS 40

Occam's Razor

MAY 2, 2017

The very best analysts distill, rather than dilute. Charities can only market themselves so much, they have to figure out how to get the rest of us to do it for them. The very best analysts focus, when most will tend to gather. The very best analysts are display critical thinking, rather than giving into what’s asked.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Professor VC

JUNE 20, 2011

Less than a month later, we received a term sheet from Charles River Ventures for the Series A and as they say, the rest is financing history.with investments from Intel, Kleiner Perkins, Cisco, GE, Comcast, ADT, Rogers, and others. So what does this all mean. As I said up front, I have mixed emotions about the financing.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Reid Hoffman

AUGUST 17, 2021

You have to say, “Well, why is it that all of this massive amount of investment, position, customers, retail position, capital, talent, and all the rest, is all oriented in this direction?” And most people have become so inured on the volume and quantity and all the rest of the advertising, and say, “Oh, it doesn’t really bother me.”

Cofounder 69

Cofounder Differentiation Search Advertising 69

Reid Hoffman

AUGUST 17, 2021

You have to say, “Well, why is it that all of this massive amount of investment, position, customers, retail position, capital, talent, and all the rest, is all oriented in this direction?” And most people have become so inured on the volume and quantity and all the rest of the advertising, and say, “Oh, it doesn’t really bother me.”

Cofounder 69

Cofounder Differentiation Search Advertising 69

YoungUpstarts

SEPTEMBER 14, 2015

They give up balance, which leads to dilution of focus, in favor of an “all in” and committed attack. Within them burns a passion to solve problems and spot opportunities the rest of us mere mortals cannot. But this is REALLY HARD TO DO. Billy Bosworth, CEO of DataStax, had a saying for this process of exclusion.

Entrepreneur 100

Entrepreneur Dilution Chicago Partner 100

www.paulgraham.com

OCTOBER 23, 2010

You could sense them squirming on the hook, but you knew there would be no rest for them till theyd signed up. If you build the simple, inexpensive option, youll not onlyfind it easier to sell at first, but youll also be in the best position to conquer the rest of the market. Henry Ford did it to the car makers that precededhim.

Startup 105

Startup Cofounder Software Stock 105

maplebutter.com

JANUARY 8, 2013

I’m part of an early startup made up of four friends, we’re all motivated and really dedicated to our startup. However, one of my co-founders doesn’t seem to be as motivated as the rest of us. When it comes to early stage investing – it’s all gut. It’s the team and what they’ve built so far. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

The Next Web

DECEMBER 3, 2013

So we tend to go with one person, but we do like to see the team so even if that’s during the Q&A, you should bring up the rest of the team for questions.”. We saw a few quite recently where founders had given up 70 percent of equity to a really early stage seed investor,” Campbell said. Pick a confident speaker.

Startup 153

Startup Cofounder Valuation Dilution 153

www.paulgraham.com

APRIL 28, 2010

Dilution is normal. They cant dilute you without diluting themselves justas much. And they wont dilute themselves unless they end up net ahead. So its your choicewhether you get diluted. [ Theres no real answer.There is no rational way to value an early stage startup. How much does an angel invest?

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Up and Running

JULY 14, 2015

We appreciate you writing back and letting us know what you thought of the episode, and of course for the rest of our listeners if you are interested in contacting us, you can do that by emailing bcast@bplans.com. The cool thing is with the device like, that with the science like that, there’s a lot of early stage proving ground needed.

Incubator 60

Incubator Email Startup Oregon 60

Reid Hoffman

NOVEMBER 14, 2018

Raising excessive amounts of capital dilutes their stake in the company, and introduces a preference overhang (all that money has to be paid back before the founders and employees get to participate in the upside). Raise more money than you need. Entrepreneurs try to avoid raising more capital than they need. Organization.

Engineer 28

Engineer Burn Rate Hiring Dilution 28

Life Beyond Code

SEPTEMBER 27, 2011

And today, we have a group of early adopter premium members who are making good use of the program. The rest of the services are for paying members only. He has veered away from angel financing, and has decided to bootstrap with customer money, and preserve equity ownership, foregoing any immediate dilution related to financing.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Up and Running

DECEMBER 9, 2014

The pro is that it’s cheap capital and it’s not diluted. This is John Bates with Executive Speaking Success thanking everyone for being with us today and wishing you a wonderful rest of your day. My name is John Bates. I’m the CEO of Executive Speaking Success and I’m a long-time entrepreneur.

Small Business 95

Small Business Finance Forecast Metrics 95