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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.

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

Startup Lessons Learned

He's been with the firm since its inception in 2009 and has overseen its rapid growth, from three employees to 150+ and from $300 million in assets under management to more than $10 billion. First, the introduction of seed money as an institutional form of capital. What about in the public markets?

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

At some point, this breaks if their isn’t an exit or IPO. I raised $500k in seed money to start the company. Post script: Ron Conway’s rationale in our debate was: 1) “all money in a start-up should remain in the company.&# Only if it’s truly early stage would I agree. Two answers from me.

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Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. They both raised angel / seed money of $1.5 million to fund operations in their first year of operations.

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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. Recruit employees in the blind belief that the amazing job they’re quitting to join you will be worth it in the long run. My employees. Many times it’s less.

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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.

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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.