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Should Startups Focus on Profitability or Not?

Both Sides of the Table

Fast early growth in a market is often eroded when competition gets fierce and prices are forced down due to competition. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). They both raised angel / seed money of $1.5

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Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

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How to Fund a Startup

www.paulgraham.com

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. It wasnt because they werent accredited investors that I didntask my parents for seed money, though. Theres only common stock at this stage.

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From Nothing To Something. How To Get There.

techcrunch.com

or just present your crappy, first-run code to investors then pay someone to re-write the entire thing. The contract work burn out is totally where I’m coming from… chip WAAIIITTT… wasn’t the coding of the first version of Digg outsourced to some guy on Elance? What did you do again? Who knows.

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The Future of Web Startups

www.paulgraham.com

We could hire employees, but we want to be forced to figure out how to scale investing. We think of the techniques were developing for dealing with large numbers of startups as like software. Sometimes it literally is software, like. It will probably involve writing some software, but fortunately we can do that.

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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. “I wouldn’t expect anyone except seed investors to complain about it,” Graham says. The Week in Review.