Startup Professionals Musings

MAY 22, 2020

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

FEBRUARY 18, 2023

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

NOVEMBER 26, 2022

One of the myths I often hear as an advisor to many entrepreneurs is that their lifestyle would somehow be better if they could more easily find other people’s money to build their startup. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

JANUARY 18, 2020

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Supportive co-founder and executive positions. Member of the Advisory Board.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Supportive co-founder and executive positions. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

MAY 14, 2023

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 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-founders to help you? The co-founder relationship dilemma.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

FEBRUARY 29, 2020

One of the myths I often hear as an advisor to many entrepreneurs is that their lifestyle would somehow be better if they could more easily find other people’s money to build their startup. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Startup Professionals Musings

MAY 25, 2022

Business partners can be co-founders in a startup, multiple owners of an existing business, or a joint venture. You need to do the due diligence to make that decision before you sign away your equity. You need to do the due diligence to make that decision before you sign away your equity.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

Startup Professionals Musings

FEBRUARY 8, 2013

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Look impartially from all angles and do the follow-up.

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

Startup Professionals Musings

SEPTEMBER 29, 2018

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 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

AUGUST 19, 2020

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 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

JANUARY 24, 2021

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Startup Professionals Musings

FEBRUARY 9, 2020

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. You need to have a technical genius on the team to get your startup product off the ground. Outsourcing your core competency does not work.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

FEBRUARY 21, 2012

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. Which would you bet on?

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

JUNE 20, 2016

Thus the top priority of every entrepreneur who wants funding should be to build and highlight their “dream team” of co-founders, executives and advisers, to attract the biggest and best investors. On the other hand, having failed in an earlier startup may be an advantage, if positioned properly, and some learning is evident.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Startup Professionals Musings

DECEMBER 23, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Marty Zwilling.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Startup Professionals Musings

FEBRUARY 18, 2018

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. You need to have a technical genius on the team to get your startup product off the ground. Outsourcing your core competency does not work.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

Startup Professionals Musings

JUNE 11, 2014

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. You need to have a technical genius on the team to get your startup product off the ground. Outsourcing your core competency does not work.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Startup Professionals Musings

JANUARY 28, 2011

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. Pay people with equity or future revenue.

Burn Rate 231

Burn Rate Startup Salary Equity 231

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

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

JULY 1, 2022

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

AUGUST 23, 2021

Thus, in my role as mentor to young entrepreneurs, I always recommend that you first take a hard look at your own values and priorities, before jumping into any new startup, as the founder, or even as a side hustle. Timing is critical for every startup. Of course, if you wait for the perfect time, you may never start.

Startup 399

Startup Exit Strategy Cofounder Equity 399

Startup Professionals Musings

JANUARY 14, 2022

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. This would be a mistake, and could easily cost you your startup. Even if the endpoint is the same, there are many different roads to get there, and it’s hard for a startup to be on two roads at once.

Partner 351

Partner Cofounder Sweat Equity Startup 351

Startup Professionals Musings

APRIL 10, 2016

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

SEPTEMBER 25, 2019

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

MARCH 16, 2011

Money to build the business is the number one challenge for most startups. A large percentage of startups never apply to either. You need to explore more common and more productive approaches for getting your startup moving forward. Self-funding is the preferred source of cash for your startup – if you can do it.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

SEPTEMBER 11, 2020

One of the reasons that now is the time to be an entrepreneur is the explosion of startup assistance organizations, usually called incubators or accelerators. A few are still trying to make a profitable business out of nurturing startups, but it’s a challenge to make money when your customer startups don’t have many resources to give.

Incubator 398

Incubator Silicon Valley North America Startup 398

Startup Professionals Musings

APRIL 8, 2015

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 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

JUNE 8, 2016

One of the myths I often hear as an advisor to many entrepreneurs is that their lifestyle would somehow be better if they could more easily find other people’s money to build their startup. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Bootstrapping 120

Bootstrapping Advisory Board Startup Venture Capital 120

Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Startup Professionals Musings

NOVEMBER 1, 2014

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Supportive co-founder and executive positions. Member of the Advisory Board.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. Startups looking for an angel investor, or a Venture Capital investment usually realize that neither of these sources of funds normally has any connection with a bank. Many investment banks even call themselves “boutiques.”

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

APRIL 23, 2013

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Reinvest gross profit. Creative marketing.

Equity 241

Equity Bootstrapping Startup Merger 241