Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

MARCH 16, 2016

Whether you are talking to peers, competitors or investors, you as an active entrepreneur will be judged on your familiarity with today’s startup and funding jargon. This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Could your startup be the next one? Sweat equity.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Steve Blank

MARCH 16, 2016

There are many reasons to found a startup. There are many reasons to work at a startup. To most founders a startup is not a job, but a calling. But startups require money upfront for product development and later to scale. What does this mean for startup founders? ——-.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk.

Merger 379

Merger Due Diligence SEC IPO 379

View from Seed

MARCH 24, 2021

.” Below are our favorite pieces from the past few years, divided in to a few key categories: fundraising, company building, product development, industry trends, and the life of a VC. Free Template for Great Startup Pitch Decks, Direct from VCs. ’ like all startups have to, but also “why invest now?'”

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Hippoland

AUGUST 17, 2016

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders. In contrast, if you do an equity round, you as the founder will often have to pay $20k-$50k in legal bills.

Equity 48

Equity Convertible Security Silicon Valley Technical Review 48

Feld Thoughts

OCTOBER 20, 2020

Instead, we are being intentional about how to support an increasing number of Black board members, founders, CEOs, teams, suppliers, and anti-racist products. DEIS will present practical solutions for startup teams, accelerators, ecosystem builders, investors, and big tech companies. It is not a performative event.

Equity 123

Equity Cofounder Venture Capital .Net 123

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

MAY 30, 2022

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a decade ago, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. Neither is effective without the other.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

OCTOBER 19, 2015

That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. If you consider yourself a technologist, you probably believe and may be propagating one of the following myths: The first priority for funding should be to develop the technology.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. So why would you treat your debt investors (somewhat) like equity investors? Sound familiar?

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

ConversionXL

JANUARY 18, 2022

In 2018, after two short years and $3 million raised in startup funds, recruitment AI company Ansaro shut down due to bad market fit. Product marketers own a variety of marketing responsibilities, which can be roughly divided into two broad categories: pre-launch and post-launch. Use brand marketing strategies to build brand equity.

Marketing 110

Marketing Product Audience Equity 110

David Teten

OCTOBER 1, 2015

and if you’re like most of today’s startups — you need to get an app in the hands of customers. On the other side of the equation, there are a growing number of design, development, and digital media shops who are hungry to expand, or swap focus, to building a company that’s more than just a service shop.

Software Developers 60

Software Developers Software Development Software Developer 60

Startup Professionals Musings

SEPTEMBER 1, 2019

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a while back, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. Neither is effective without the other.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Up and Running

MAY 15, 2014

I’ve worked with a lot of amazing people on my startup, PopInShop. When I was going through the co-founder “dating” process, I’d found a potential partner through my network who seemed to be perfect. At the end of the month, we’d evaluate the partnership and discuss equity. Why did I think that?

Partner 113

Partner Cofounder Equity Metrics 113

Both Sides of the Table

MAY 27, 2013

But the thing I am most proud of about Rob is that he has taken a company with a uniquely talented founder & CTO – Nick Halstead – and managed to build a very tight working relationship with Nick where we drive world-class product development without having the usual founder / CEO conflicts.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Duct Tape Marketing

APRIL 6, 2022

Steve is the CEO of Founders Space, one of the world’s leading startup accelerators with over 50 partners in 22 countries. Founders Space was ranked the #1 incubator for overseas startups by Forbes and Entrepreneur Magazines. 3:49] How would you define the difference between a startup and somebody starting a business? [5:04]

San Francisco 97

San Francisco Technical Review Incubator Silicon Valley 97

Business Plan Blog

AUGUST 20, 2013

Every Tech Startup Needs a Chief Technical Officer. However, the biggest mistake that a non-tech entrepreneur launching a tech business is to neglect bringing on a tech savvy co-founder on the management team. This is generally achieved in one of the following ways: CTO Level Co-Founder (Equity). Product Development Team.

CTO Hire 55

CTO Hire Fractional CTO Architecture Cofounder 55

David Teten

MAY 1, 2013

This is part 1 of a 2-part series on domain names and startups; part 2 will be “ Build Your Startup on a Vacant Domain Name ”. A startup called Corpora made headlines for all the wrong reasons after tech bloggers ran an image search to find the company logo. credit: Wikipedia)). Facebook paid $8.5

Naming 114

Naming Semantic Venture Capital Startup 114

The Startup Magazine

SEPTEMBER 12, 2019

Most startups view venture capital funding as a blessing from above — eager to take it as soon as they can get it. Tempted by large sums of money and the perceived validation that comes along with being funded, founders turn to venture capitalists to accelerate their company’s growth. Focus on Product Development First.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

viniciusvacanti.com

SEPTEMBER 7, 2010

Home About Contact Me How To Make It as a First-Time Entrepreneur Vinicius Vacanti Guide to Finding a Technical Co-Founder September 7, 2010 | View Comments Steve Job's Technical Co-Founder “I’ve got this HUGE idea. I just need to find a technical co-founder.&# So, why should they pick you? Have Experience.

Cofounder 43

Cofounder Technical Cofounder Founder Ruby 43

femgineer.com

JULY 18, 2010

HOME About the Femgineer Speaking Engagements Reading List Recruiting Startup Engineers With the startup market taking off, there is always a clamor to find good engineers, developers, and designers. There are a lot of engineers out there who have been burned by founders who pull and push them in a variety of directions.

Engineer 41

Engineer Software Review Startup Technical Review 41

Startup Professionals Musings

SEPTEMBER 13, 2017

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a while back, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. Neither is effective without the other.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

The Startup Magazine

JANUARY 8, 2019

This year, The Startup Magazine is proud to sponsor the entrepreneurship and venture capital conference, SeedCon, run by the Chicago Booth business school. This year’s conference will take place at 1871, Chicago’s startup incubator located in the Merchandise Mart. Event Focus. Investors and Entrepreneurs. SeedCon 2019.

Chicago 101

Chicago Venture Capital Cofounder Incubator 101

Startup Professionals Musings

JANUARY 12, 2013

Many entrepreneurs I know don’t realize that the language they learned in the corporate world, or even their recent MBA class, won’t get them ahead in the startup world today. Even if you have heard some of the new terms, but can’t explain how, when, and why they are relevant to your startup, you may be in jeopardy. Startup pivot.

Entrepreneur 274

Entrepreneur Accredited Investor Silicon Valley Angel Investor 274

VC Cafe

FEBRUARY 27, 2024

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Startup Professionals Musings

FEBRUARY 4, 2015

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a while back, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. Neither is effective without the other.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

Austin Startup

JULY 23, 2010

No, not related to the famous Wendy’s founder.) But, the other way Dave has found to add a dimension of his software product development and startup experience into the mix is through the development of the web service, 1TeamWeb. My next door neighbor is Dave Thomas. (No,

Sweat Equity 60

Sweat Equity Technical Review Software Review Austin 60

The Equity Kicker

MARCH 26, 2018

In our experience, structured customer development work is right up there amongst the most valuable things a founder can do in the early days of their startup. But good customer development is tough to do. Let me use the Jobs To Be Done (JTBD) framework for product development to explain why.

Customer 75

Customer Framework Differentiation Customer Development 75

Startup Lessons Learned

MAY 14, 2009

Lessons Learned by Eric Ries Thursday, May 14, 2009 The Lean Startup Workshop - now an OReilly Master Class My rate of posting has been much lower lately, and this is mostly due to preparations for the upcoming Lean Startup Workshop on May 29. I joined a financial services tech startup in 1999. You can click here to learn more.

Lean 60

Lean San Francisco Continuous Deployment Software Review 60

Startup Professionals Musings

NOVEMBER 3, 2013

That’s where I see too much entrepreneur burnout, growth plateaus, and Founders being replaced, to their chagrin. According to one study , only 45% of Founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. Neither is effective without the other.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

Up and Running

JANUARY 30, 2014

Accelerators focus on early-stage startups, while incubators are geared toward later-stage startups. An accelerator usually offers a small amount of capital, office space, and mentorship in exchange for a small amount of equity, usually less than 10 percent. Those founders all have different experiences and backgrounds.

Incubator 105

Incubator New York City Venture Capital Startup 105

infochachkie.com

SEPTEMBER 24, 2011

Be The Beatles Not The Flock Of Seagulls John Greathouse’s Bio ConTraps Part 2 ConTrap Part 3 ConTrap part 4 Startup Children Pt 2 Startup Children Pt 5 Startup Children Pt 3 Startup Children Pt 4 Decision Making 101 Talks: Jason Nazar on how to Persuade. Hands-on startup advice for emerging entrepreneurs.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

YoungUpstarts

OCTOBER 1, 2018

by Harold Hardaway and Shannon Hernandez, Co-Founders of Cardigan Communications Group. A good culture ensures a strong connection between your product, purpose, people and work environment to support your long-term strategy. The founder and first hires have overcome obstacles and understand the behaviors that prove to lead to success.

Cofounder 113

Cofounder Hiring Leadership Employee 113