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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. You will build out features or expend to platforms — often before you have enough market feedback to warrant it.

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Investors Think They’re More Impactful Than They Actually Are

VC Adventure

Indeed, many firms even institutionalize the practice of providing help to portfolio companies through extensive platforms that may include PR, talent, marketing, technical, and other help (sometimes offered for free, sometimes offered ads a pay-for-service, but often at below-market rates for those services).

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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. That’s because CAC needs to take into account all of your marketing spend to truly understand how much each customer costs you.

Metrics 150
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

They have seen one side of a market where many of us have seen the ebb and flow multiple times. Still, market amnesia by ordinarily rational actors always surprises me. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. I spoke about a lot of things during the keynote.

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What I Would Look for When Choosing a VC – Knowing What I Know Now?

Both Sides of the Table

SEO marketing vs. social marketing. Of course it is super helpful if a VC can drop you in to important people for business development, recruiting, PR, sales and eventually M&A. Think of web vs. mobile. Traditional software vs. SaaS. Connections? There are times you just need help getting s**t done.

Portfolio 364
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Cracking The Code: SaaS Multiples: Recovery or Bubble?

Cracking the Code

The sales productivity ratio (measured with the Customer Acquisition Cost or CAC ratio) are also fairly similar for the two groups (except for a small cap dip in Q4 09) and therefore do not explain the difference Why is scale so much rewarded by public markets? market cap or even Salesforce at $17.5B SaaS 13 Index Valuation.

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What is Sweat Equity Worth?

www.entrepreneur.com

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway. July 31, 2007 |.