Startup Professionals Musings

DECEMBER 24, 2018

Based on my experience, creating a new business is at least as difficult as creating an innovative solution, and it takes a knowledge of finance, operations, customers and the marketplace. Plan to and assemble the right team, including co-founders. Building and running a business is not a solo operation.

Angel Investor 249

Angel Investor Cofounder Finance Operations 249

Startup Professionals Musings

JULY 16, 2017

In fact, I would broaden the definition of partner from co-founder to “business partner.” The reason is that good attributes apply equally well to “external” partners, as they do to internal partners, like a co-founder or CTO. Look at the big picture first of development, finance, and marketing/sales.

Partner 140

Partner Software Review CTO Hire Cofounder 140

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.” In this context, I’m broadening the definition of partner from co-founder to “business partner.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

APRIL 22, 2014

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 ”. In this context, I’m broadening the definition of partner from co-founder to “business partner.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 269

Partner Software Review CTO Hire Fractional CTO 269

Startup Professionals Musings

NOVEMBER 16, 2018

Yet I find that many technical founders don’t feel they need it at all, or at best point to one person on the team who is marketing. Too many founders, strapped for cash or time, make poor team selections, assuming they can fix the problem later. I believe the real challenge is make your whole team a marketing machine.

Technical Review 178

Technical Review Marketing Due Diligence Social Media 178

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. You need specialized equipment.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Startup Professionals Musings

SEPTEMBER 22, 2011

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. You need specialized equipment.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

NOVEMBER 4, 2013

Even in most of these cases, the original startup founders were pushed out, or heavily supplemented, with “experienced” executives. Sure, there are examples of Founders who have survived and prospered, such as Bill Gates and Larry Page, but these guys are the exception, not the rule. business entrepreneur exit founder IPO startup'

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Startup Professionals Musings

APRIL 11, 2021

Here are five of the most common examples: Failure to document a Founder agreement at the beginning. This oversight can lead to the so-called “forgotten Founder” problem. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

Startup Professionals Musings

NOVEMBER 13, 2012

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. You need specialized equipment.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Startup Professionals Musings

JULY 16, 2012

For a startup founder, this stage is when the “big idea” has become a passion for him, but he hasn’t written anything down yet. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system. Early-stage startup. Every startup is early-stage to someone.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Startup Professionals Musings

DECEMBER 12, 2013

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales.

Cofounder 240

Cofounder Founder Sweat Equity Startup 240

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. You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship.

Partner 351

Partner Cofounder Sweat Equity Startup 351

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. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

OCTOBER 10, 2014

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

OCTOBER 5, 2015

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category. Yet, knowing this distinction is important. A micro venture capital firm.

Seed Stage 120

Seed Stage Finance Early Stage Startup 120

Startup Professionals Musings

NOVEMBER 8, 2012

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales.

Cofounder 244

Cofounder Founder Sweat Equity Partner 244

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. Even if your product is a technological marvel, I look for balanced strength on the team in finance, marketing and operations.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Startup Professionals Musings

JUNE 29, 2011

A while back I talked about how and where to find a co-founder in “ Ten Steps in Choosing the Right Startup Partner ”. In this context, I’m broadening the definition of partner from co-founder to “business partner.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 240

Partner Software Review CTO Hire Fractional CTO 240

Startup Professionals Musings

OCTOBER 3, 2016

Results-oriented entrepreneurs limit status titles to traditional business results roles, including finance, operations, customer satisfaction, and business development. Founder and key partners are role models for results. You will not impress investors in a startup with titles like “Chief Inspiration Officer” or “Chief Thinker.”

Entrepreneur 266

Entrepreneur Technical Review Metrics Restful 266

Startup Professionals Musings

MAY 24, 2010

A week ago I talked about how and where to find a co-founder in “ How to Select an Ideal Startup Co-Founder ”. In this article, I’m broadening the definition of partner from co-founder to “business partner.” In this article, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 230

Partner Software Review CTO Hire Fractional CTO 230

Startup Professionals Musings

SEPTEMBER 3, 2011

Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales. In reality, the pressures of a relationship break up more startups, or vice versa, than running out of money.

Cofounder 239

Cofounder Founder Sweat Equity Startup 239

Startup Professionals Musings

DECEMBER 16, 2017

David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by 500,000 entrepreneurs over the years, and funding over 1800 startups in just the last 12 months. Rose, according to his latest book, “ Angel Investing.” All startups always need more money.

Angel Investor 190

Angel Investor Accredited Investor IRR Angel Groups 190

Startup Professionals Musings

JULY 23, 2012

Every startup faces a myriad of challenges that are well beyond the scope of any founder, so you need a few guiding lights to illuminate the road ahead. Even more importantly, you should expect these members of your team to be your advocates to angel or VC investors, or even be part of your friends and family financing round.

Advisory Board 239

Advisory Board Technical Review Startup Software Review 239

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. Most founders bootstrap product development. Very few people have both, but there are some notable exceptions, including Mark Zuckerberg of Facebook and Elon Musk , founder of Tesla Motors, SpaceX and others.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Startup Professionals Musings

JULY 25, 2016

Managing personal finances separate from the business. Being an entrepreneur is a lifestyle, making it hard to isolate the startup finances from family financial stability and future retirement requirements. They aren’t mentally prepared for the long-term grind, with repeated tough challenges along the way.

Entrepreneur 120

Entrepreneur Founder Silicon Valley Viral 120

Startup Professionals Musings

AUGUST 4, 2010

Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales. Tags: entrepreneur founder partnerships business. We both have the same vision.” It usually doesn’t work.

Cofounder 207

Cofounder Founder Sweat Equity Startup 207

Startup Professionals Musings

SEPTEMBER 22, 2021

Many of his original investors still remember when Facebook founder Mark Zuckerberg first related his personal challenge to only eat meat that he killed himself, in an effort to learn sustainable farming and consume resources responsibly. Emphasize the value and skills of your team. Demonstrate flexibility, resilience, and determination.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

Startup Professionals Musings

NOVEMBER 23, 2013

Many businesses fail simply because they ignore or do poorly one or more of the basic aspects of every business, like accounting, finance, personnel, or business law. Understanding one’s industry is necessary but not sufficient to be successful.

Intellectual Property 265

Intellectual Property Founder Startup Leadership 265

Startup Professionals Musings

AUGUST 18, 2023

Billionaire entrepreneur and "Shark Tank" co-host Mark Cuban is an outspoken proponent of the all-in early approach in a video interview, and made it clear that he gives no credibility and low odds to founders seeking funding who have not fully committed their time and efforts to their cause.

Private Equity 255

Private Equity Salary Cofounder Equity 255

Startup Professionals Musings

AUGUST 1, 2018

Most technical people I know love to discuss and debate technology, but avoid business subjects, including finance and marketing, like the plague. Focus on customer value in every job. Comfortable interacting with people on business subjects. They simply don’t have the interest, or confidence in their ability, in these areas.

Founder 132

Founder Italy Seattle Startup 132

Startup Professionals Musings

MAY 5, 2011

Every startup faces a myriad of challenges that are well beyond the scope of any founder, so you need a few guiding lights to illuminate the road ahead. Even more importantly, you should expect these members of your team to be your advocates to angel or VC investors, or even be part of your friends and family financing round.

Advisory Board 239

Advisory Board Technical Review Software Review Startup 239

Startup Professionals Musings

MAY 9, 2014

David is also the CEO of Gust , which is an online platform for startup financing used by over 50,000 accredited angel investors, 1000 angel groups and venture capital funds, and 250,000 entrepreneurs. It doesn’t seem to matter what the founders’ projections are, or how fast they believe they will turn profitable.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

Startup Professionals Musings

NOVEMBER 30, 2015

A popular approach these days seems to be for founders to regale investors early with a pitch touting the newest “million-dollar idea.” If your strength is technology, find a co-founder who has a comparable strength in business, finance or marketing. Find a partner and core team early to supplement your expertise.

Intellectual Property 120

Intellectual Property Entrepreneur Preferred Stock Stealth 120

Startup Professionals Musings

OCTOBER 9, 2021

A breadth of understanding of common business principles, such as management, personnel and finance, is more important than a depth of knowledge in a technical area. Peers won’t be able to help you much in finding external investors, co-founders with prior experience and industry connections for distribution and marketing.

Entrepreneur 373

Entrepreneur Chad Incubator Dilution 373

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. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

JULY 20, 2015

As an advisor to startups, I often get asked what to look for in an ideal co-founder or business partner. For example, a technologist needs a strong finance person or a strong sales person who is willing and able to make decisions. Able to help, rather than be a helper. You need to believe that you can learn from them, not manage them.

Partner 120

Partner Technical Review Due Diligence Startup 120