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Should Startups Focus on Profitability or Not?

Both Sides of the Table

They both raised angel / seed money of $1.5 They got a bigger office space so their employees would feel comfortable and they could improve employee retention. Let’s consider the following two software companies, both of which have 66% gross margins. Both companies look the exact same after one year.

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The Corrosive Downside of Acquihires

Both Sides of the Table

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. And wants to structure a huge payout for the employees that will remain. We get the mechanics.

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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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Want $50k in Seed Funding? Apply now.

ReadWriteStart

The $50k seed money isn't a grant, but an equity investment by Capital Innovators. JBara Software , a SaaS-based customer retention tool. Capital Innovators has put together a complete package to help startup businesses who want to grow to the next level, refine their offerings and get connected to the right advisors.

St. Louis 124