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Should Startups Focus on Profitability or Not?

Both Sides of the Table

Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. Being profitable allows you degrees of freedom you don’t have when you rely upon other people’s money. If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different.

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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. Whendel.icio.us

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From Nothing To Something. How To Get There.

techcrunch.com

Tech Gadgets Mobile Enterprise GreenTech CrunchBase TechCrunch TV Disrupt SF More TechCrunch TV Beta Invites Crunchies Elevator Pitches Gillmor Gang Podcasts TechCrunch Europe TechCrunch Trends TechCrunch France TechCrunch Japan Whats Hot: Android Apple Facebook Google Microsoft Twitter Yahoo Zynga Subscribe: From Nothing To Something.

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The Future of Web Startups

www.paulgraham.com

Startups are undergoing the same transformation that technology does when it becomes cheaper. Its a pattern we see over and over in technology. Standardization When technology makes something dramatically cheaper, standardization always follows. Sometimes it literally is software, like. Weve done the same thing ourselves.

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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. “The tech industry creates roughly 10 awesome companies per year,” he says. Entrepreneurs are survivors by nature.