Both Sides of the Table

MARCH 21, 2013

help you integrate your product with other systems making it harder for your product to be replaced by competitors. So when I meet with GRP portfolio companies that do enterprise sales I try to emphasize the following: 1. Only Work on Projects That Support Your Core Product Effort. rollout support. configuration.

Software Review 321

Software Review Software IP Technical Review 321

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Innovate In the early years of a startup there is a lot of kinetic energy of enthusiastic innovators looking to launch a product that changes how an industry works.

Operations 286

Operations New York City Technical Review Startup 286

Hunter Walker

JANUARY 2, 2017

When Satya and I started Homebrew in 2013 one of our bets for the coming decades was that non-traditional acquirers would become more aggressive in their pursuit of technology startups. We had our first taste of this trend playing out early in 2016 when GM acquired self-driving tech startup Cruise for north of $1b.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

David Teten

AUGUST 19, 2019

In addition, I’ve noted a few multi-product lending firms, e.g., Kapitus and United Capital Source , which provide RBI as one of many structural options to companies seeking capital. . We have a special program if you are pre-seed and need product development. I’ve listed below all of the major RBI venture capitalists I’ve identified.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

APRIL 23, 2017

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. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

Startup Professionals Musings

DECEMBER 18, 2013

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. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Entrepreneur 252

Entrepreneur Marketing Technical Review Dilution 252

Startup Professionals Musings

APRIL 23, 2012

The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an obvious inequity. Building a product doesn’t get it distributed and sold. Expertise can be marketing, technical, financial, or sales.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. I’m doing due diligence on a company of another entrepreneur in LA whose company was apparently doing very well. I know, I know … technically they can be structured as mergers.

Merger 276

Merger Technical Review Early Stage Dilution 276

Both Sides of the Table

JANUARY 4, 2014

I think as a tech industry we have bred a culture that places more emphasis on product excellence than managing human behavior. Of course it makes no sense to have great people management and a crappy product. One who wants to commercialize his product and start charging while the other prefers to not charge.

Founder 340

Founder Sacramento Cofounder Technical Review 340

Startup Professionals Musings

NOVEMBER 10, 2012

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. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Startup 254

Startup Technical Review Dilution Early Stage 254

Hearpreneur

JANUARY 30, 2022

Much of our lives and many of our enterprises have been able to continue in ways that would not have been conceivable 15 years ago due to technological advancements. Digital transformation efforts will be energized by our rapid embrace of technology. The term digital transformation is no longer a catchphrase. 4- Move online.

Entrepreneur 124

Entrepreneur Green Technical Review Social Media 124

betashop.com

OCTOBER 8, 2012

90 Things I’ve Learned From Founding 4 Technology Companies. On October 27, 2010 I wrote a blog post about the “ 57 Things I Learned Founding 3 Tech Companies.”. million registered users, 7500 supplier partners, 600 team members, and a run-rate of more than $150M in sales in just 15 months. It’s all about the product.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Startup Professionals Musings

NOVEMBER 8, 2010

The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an obvious inequity. Building a product doesn’t get it distributed and sold. Expertise can be marketing, technical, financial, or sales.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

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. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

Both Sides of the Table

FEBRUARY 8, 2016

Much has changed in the past four months of the technology startup world and how outsiders value the business. Pragmatic cost cuts are always possible and often productive. Optimize for a W more than % dilution in these circumstances. Founders hate them because they’re dilutive. Down rounds are corrosive.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Valuation 150

Both Sides of the Table

SEPTEMBER 28, 2014

We’re going to start aggressively spend money on marketing our product. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. We want a strong balance sheet (um, ok. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

AUGUST 14, 2017

Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

YoungUpstarts

SEPTEMBER 23, 2017

In some ways, you’ll feel as if you’re losing control over your original ideas and won’t know how to get it back, due to owing the investors return on investment. You may look to save cash in other ways, maybe by outsourcing tech staff and bringing in freelancers, which could help you build the solution you’d envisioned.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Steve Blank

APRIL 10, 2019

A version of this article first appeared in the Harvard Business Review. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. VC’s have just changed the ~50-year old social contract with startup employees.

Stock Options 334

Stock Options Stock Vesting Common Stock 334

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Technology-centric businesses. Typical business model.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Startup 227

Startup Technical Review Dilution Early Stage 227

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. This article originally appeared on TechCrunch. I acknowledged this in the article.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

YoungUpstarts

SEPTEMBER 16, 2015

Raise too much capital at any given stage and suffer more dilution than is necessary – obviously not ideal. John Vrionis is a partner at Lightspeed Venture Partners who focuses primarily on early stage enterprise and consumer technology investments. It’s part art, part science. Set Quantifiable Goals.

Valuation 100

Valuation Dilution Chicago Technical Review 100

Austin Startup

MARCH 26, 2019

I frequently see promising startups with a great product and strong initial economics hit a wall due to the piling up of problems relating to these questions, or what I like to call the ‘DTC death by a thousand cuts’. For low dollar cost products, be somewhat liberal with sending product to influencers.

Technical Review 49

Technical Review Software Review China Acquisition 49

Both Sides of the Table

JULY 25, 2010

Before booking a hotel I always check out Trip Advisor and read reviews. It’s hard for angels to assess whether or not to invest because they often have day jobs and can’t commit to the kind of due diligence that most VCs go through. Obviously I’m assuming that you have a great product and/or strategy.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

YoungUpstarts

MAY 31, 2016

Oliver, author of “ Mantra Design ” and “ Mantra Leadership “ Successful businesses are not a result of chance, but are the by-product of an effective and evolving strategic plan, complimented by an equally effective operating infrastructure, and supported by exceptional human talent. Is a marketing plan important?

Technical Review 100

Technical Review Leadership Early Stage Initial Public Offering 100

ConversionXL

AUGUST 30, 2018

It slows product development. According to that same NNG research: Ecommerce sites can expect to double their sales. For web-based products, user research can deliver quantitative measurement of on-site user behavior and qualitative insights from open-ended surveys and user recordings. Your product is not ready.

Design 111

Design Framework Product Development Technical Review 111

YoungUpstarts

OCTOBER 16, 2016

Despite the peaks and valleys in the economy, and the institution of more technologies, this figure has been pretty consistent for years. At my company, our cash position is reviewed every week, come rain or shine. You’ll be inundated with sales pitches, lame template emails, unsolicited voicemails and more. Manage cash flow.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

ReadWriteStart

JULY 18, 2011

Jeff Clavier was the first tech investor I ever met; he was introduced to me years ago by some hip engineers in a bar as "one of the few cool VCs." Kedrosky: "In the 90's I was an analyst through all this [tech investment and IPO] madness. Think about it that way, filling up their shelves with product.

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Austin Startup

FEBRUARY 4, 2019

L to R: Tiara Zolniez (Co-Founder & Sales), Dr. Roshawnna Novellus (Co-Founder & CEO), Alisha Griffey (COO) The Forrest Four-Cast: February 4, 2019 Fifty diverse startups will aim to impress a panel of judges and a live audience with their skills, creativity and innovation at SXSW Pitch Presented by Cyndx.

Startup 50

Startup Cofounder Technical Review Equity 50

Both Sides of the Table

APRIL 27, 2010

I learned how to better run a product management process. I learned how to integrate customers into our product development process. But in our first year of sales (and those were really shitty years to be selling software) we sold $2.1 I learned how to establish sales targets and how to manage a sales pipeline.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Austin Startup

NOVEMBER 12, 2017

If you have a sales model that involves relationship selling to high-level decision makers, you can be sure they would prefer a detailed proposal from you with a request to “sign here.” You should assume your target has substitutes for your product, has an overflowing inbox, and is being wooed by others.

Term Sheet 48

Term Sheet Technical Review Due Diligence Merger 48

Both Sides of the Table

OCTOBER 11, 2009

The week before your meeting 2 people need to cancel due to travel conflicts. Time to start thinking about how to make it more productive. You can go as high as 1% because they’re going to get diluted when you bring in VC. Tags: Start-up Advice startup technology vc venture capital. Others must echo my experiences.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

Hunter Walker

JANUARY 15, 2016

Ted Rheingold: In 2003 I owned and ran a web service business called OneMatchFire , and made a number of image sharing products for customers (or as side projects). By the end of 2004 I had brought on two co-founders: John Vars – who is now the Chief Product Office at TaskRabbit, and Steven Reading took over Sales and Revenue.

Technical Review 48

Technical Review Startup Cofounder SMS 48

VC Cafe

SEPTEMBER 26, 2010

The newly formed teams then work for the entire weekend, with the help of some experienced mentors from the industry, who volunteer their time to share advice on product, technology, legal, PR and other issues. For example, you may point out that there is a company with similar technology, but different application/market.

Elevator Pitch 103

Elevator Pitch Incubator Technical Review Startup 103

Both Sides of the Table

SEPTEMBER 29, 2009

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Can a deal get done?

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

JANUARY 9, 2014

Having a clear focus means it’s easier to communicate what your product is and who it’s for. By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product. Here are two examples. Quote from John Wilshire, Artefact Cards 4.

Early Stage 102

Early Stage Startup Cofounder Design 102