Both Sides of the Table

FEBRUARY 6, 2013

Final startup grind from msuster. And the folks at Startup Grind have been kind enough to invite me to present this morning in Mountain View on the topic. Quick summary: Be careful not to have too many co-founders. I don’t think VCs care as much about co-founders & economics as people think. figure out roles.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

Both Sides of the Table

JUNE 30, 2016

Amongst the most often asked questions I get from founders is, “How much money should I raise?” Reflexively founders want to raise as much money as they can because they figure it will give them more resources, better chances of competing and a longer runways before they have to do the often painful job of asking, yet again, for money.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

AUGUST 30, 2014

Many startups now go through accelerators and have mentors passing through each day with advice – usually it’s conflicting. There are bootcamps, startup classes, video interviews – the sources are now endless. What is a founder to do? Improving startup productivity ? Startup psychology / confidence ?

Framework 407

Framework Startup Retention Sales 407

Both Sides of the Table

APRIL 3, 2014

Most technology startups seem to be funded by product people or business people. Specifically what is often not in the DNA of founders are sales skills. My first startup was no different. Founders think in options. This is why I tell startups that most seasoned sales execs aren’t right for startups.

Sales 382

Sales Startup Technical Review Matching 382

Both Sides of the Table

JULY 6, 2016

I even prefer to fund entrepreneurs who have experience some level of set-backs in their careers or startups because I think it brings a humility to decision-making that I find healthy. In London when founders failed they were ostracized in the press and culturally I believe it became harder to raise capital.

South Korea 261

South Korea Silicon Valley Los Angeles Japan 261

Both Sides of the Table

JULY 22, 2010

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. Investors own 25%, the founders own 75%. Investors will always want to get their money out of the company before founders, which in the case where the company is sold for a low price is fair.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

SEPTEMBER 28, 2014

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it. Valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 15, 2022

At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. Pitchbook estimates that there is about $290 billion of VC “overhang” (money waiting to be deployed into tech startups) in the US alone and that’s up more than 4x in just the past decade.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Both Sides of the Table

JULY 13, 2013

One of my favorite events last year was attending Startup Grind where I got to interview Clayton Christensen, author of The Innovator’s Dilemma. And of course we talked about many of my views of building startups. You didn’t join startups then. You joined a startup if you couldn’t get a real job.

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Both Sides of the Table

SEPTEMBER 22, 2012

I think I’ve read Paul Graham’s post on “ Startup = Growth ” three or four times now. “The growth of a successful startup usually has three phases: There’s an initial period of slow or no growth while the startup tries to figure out what it’s doing. I talked about some of that here.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Both Sides of the Table

MAY 26, 2011

That doesn’t work in a startup. There’s a certain cadence that you can feel when you spend time hanging any well-run startup company. The startup entrepreneur knows that they’re going to be wrong often. Only half of this adage is accurate for startups. 3 months is a lifetime in a startup. Hiring at a Startup.

Hiring 335

Hiring Technical Review Startup Framework 335

Both Sides of the Table

SEPTEMBER 13, 2011

It’s very common for startup companies to have COO’s. But … Startups don’t need – shouldn’t have – COOs. I have this conversation with every startup that comes to see me and has a CEO & a COO. I think usually a COO title at a startup is an ego thing. CEO’s run things.

Technical Review 325

Technical Review Startup Cofounder Due Diligence 325

Both Sides of the Table

NOVEMBER 5, 2014

Could you withstand the public scrutiny every day of being a young tech founder and show up every morning filled with enthusiasm? Startup Lessons' I wish I had 20% of her confidence, focus and leadership skills at 25. The world needs more Meredith Perry’s, not fewer.

Technical Review 417

Technical Review South Korea San Francisco Software Review 417

Both Sides of the Table

NOVEMBER 29, 2014

This week I wrote about obsessive and competitive founders and how this forms the basis of what I look for when I invest. In fact, my salary never caught up with my pre startup salary across 2 companies and 8 years. And that’s what differentiates founders and early employees. So I did, in fact, invest in myself.

Founder 409

Founder Salary Startup Early Stage 409

Both Sides of the Table

SEPTEMBER 17, 2011

I recently wrote a post about why I didn’t think early-stage startups should have COOs. What a luxury in a startup to have the number one person in the business get to focus on just strategy? “We’re all equal co-founders and we don’t care about titles.&# I expected it to be controversial and it was.

Operations 292

Operations CTO Hire Startup Early Stage 292

Both Sides of the Table

DECEMBER 27, 2011

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. One of them is profitability.

Startup 418

Startup Revenue Technical Review Flash 418

Both Sides of the Table

JULY 1, 2010

We all like to think of startups as “non hierarchic&# organizations and to some extent that should be true. This applies to both founders and to VC’s that work with them. I see two common mistakes in companies (not just in startups, in fact). But I work hard not to “skip&# below the CEO or founders.

CTO Hire 308

CTO Hire Management Technical Review Part-Time VPE 308

Both Sides of the Table

SEPTEMBER 27, 2012

Recently I wrote a post arguing to make the definition of a Startup more inclusive than that to which Silicon Valley, fueled by Venture Capital return profiles, would sometimes like to attach to the word. Most of what I think about startup communities came from mentorship by Brad Feld through hours of private discussion and debate.

Community 378

Community San Diego Silicon Valley Los Angeles 378

Both Sides of the Table

OCTOBER 12, 2010

If you’re interested in recruiting sales people, I wrote on the topic of startup sales people: who to hire & when – understanding the roles of Journeymen, Mavericks & Superstars. Evangelical sales – Understanding startup sales people and process. This only works if you’re not a crocodile sales person.

Hiring 346

Hiring Sales Startup Early Stage 346

Both Sides of the Table

FEBRUARY 16, 2015

Fred Wilson also wrote on a similar topic in his usual more succinct manner , with a great quote being: “One thing I know for sure is that those who advise and invest in startups cannot and should not meddle in the day to day decision making. It’s harmful and hurtful to the startup and those that lead it. Startup Lessons'

Startup 150

Startup CTO Hire Sales Leadership 150

Both Sides of the Table

APRIL 26, 2016

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. And of course ultimately on profitability.

Metrics 150

Metrics Cost Acquisition Startup 150

Both Sides of the Table

MARCH 17, 2011

We know that if you start with ho-hum founders you’re less likely to assemble a world-class team. Importantly, you also find people who are too quick to undermine the authority of the founders. The best book I ever read on this topic was Delivering Happiness by Tony Hsieh (founder of Zappos). We know the mantra: Team matters.

Hiring 399

Hiring Startup Global Revenue 399

Both Sides of the Table

MARCH 25, 2016

Many startup businesses – tech or otherwise – fail. Trying outrageous new things or even trying mundane things but in new ways but with extreme quality & innovation is what fuels the tech startup industry. But today I want to give you advice on how to decrease your odds of failure in a startup.

Startup 150

Startup Seed Money DC Software Review 150

Both Sides of the Table

NOVEMBER 3, 2015

We we backed Team Grove’s mission (Kevin sourced the deal and joined the board) and just encouraged the team not to ramp up costs like many contemporary startups because we’re going to play the long game. eliminating herbicides & pesticides. ” Enter Grove.

Technical Review 150

Technical Review Software Review Founder Boston 150

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. That’s the deal you get when you’re raising in a good market for startup financing.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

MAY 9, 2011

I covered what I call “the co-founder mythology.&# Either you’re not technical and you think you need a technical co-founder or vice-versa. It is increasingly popular to have “founder dating&# or “startup weekend hackathons&# of some variety or the other. Hire your co-founder.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Both Sides of the Table

JULY 7, 2015

I love how open Danielle has been throughout the development of her startup Mattermark including honest reflections of when she has changed her opinion. Another founder … “When I pitched the idea to Adam, he was super on board,” Mr. Sloyan said. If anything it felt like a public service to founders to me.

Cap Table 150

Cap Table Cofounder Silicon Valley Startup 150

Both Sides of the Table

NOVEMBER 25, 2014

This blog started from a series of conversations I found myself having over and over again with founders and eventually decided I should just start writing them.It Yet somehow many people think that startups intended to operate at massive, Internet scale can be casual affairs. The founders of DropBox, Airbnb, Uber – you name it.

Founder 394

Founder Non-Compete Venture Capital Leadership 394

Both Sides of the Table

NOVEMBER 16, 2014

One of the vivid memories I have from being a startup CEO is the feeling that most people in your company have a look in their eyes that like they can do your job as well as you. The “span of control” for a growing tech startup is probably 6-9 people. Startup life. How hard could it be? What do you do?

CTO Hire 385

CTO Hire Entrepreneur Technical Review Leadership 385

Both Sides of the Table

OCTOBER 26, 2020

and of course a relentless pursuit of helping founders succeed. So mostly we just had to listen to customer feedback from founders, VCs and LPs. She made the right decisions not joining back then because that founder empathy is the “++” that makes a difference in this business. So why now? So What Does All This Mean?

Partner 361

Partner Management Cofounder San Francisco 361

Both Sides of the Table

FEBRUARY 19, 2019

Startups that are backed by professional financial investors almost always have a Board of Directors that consists of some set of founders, investors and sometimes independent directors. It is worth pointing out that there are actually three levels of governance in venture-backed startups. in case you’ve never heard that term.

Startup 204

Startup Dilution Government Stock Options 204

Both Sides of the Table

OCTOBER 11, 2011

What could you learn from looking at your competitors or other tech startups in a different way? Or you think their startup is a passing fad and yours is the real deal? I was at a dinner about a year ago with a few VCs and startup founders. I hear views like this all the time. The topic of FourSquare came up.

Startup 313

Startup Guerilla Silicon Valley Portfolio 313

Both Sides of the Table

JUNE 21, 2014

Startups are hard. We tell startup stories. ” Strangely, the best I’ve ever heard this exemplified is in Anthony Bourdain’s Kitchen Confidential - which is really a book about startups as told through kitchen stories. Our founder, Yves Sisteron, was my mentor and board member at my first startup.

CTO Hire 320

CTO Hire Cofounder San Francisco Silicon Valley 320

Both Sides of the Table

APRIL 19, 2011

I recently sat down with Matt Coffin , the founder of LowerMyBills, which sold for $400 million but was very nearly a bankruptcy only a few years early, and talked “startups.&#. Matt is one of the most transparent, focused & honest startup guys you’ll meet. Here’s a summary of our interview.

Acquisition 304

Acquisition Customer Warrant Term Sheet 304

Both Sides of the Table

MAY 9, 2018

I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired. But your co-founder had been senior at one of the big enterprise software companies and if I remember correctly American Express had run a big pilot with you. Some were interesting, some weren’t.

Software Review 381

Software Review Churn Rate Due Diligence Option Pool 381

Both Sides of the Table

MAY 19, 2013

My internal compass has always steered me strongly toward the belief that founders who can scale with their startup companies are better to back that founders who eventually need to hire a CEO. Very few founder CEOs go into the job ever expecting to give up their seat. To be a founder in state of mind.

Technical Review 303

Technical Review Cofounder Analytics Founder 303

Both Sides of the Table

AUGUST 14, 2011

I was recently approached by Fast Company to comment on “crisis management&# at startups in the wake of the Airbnb “ranksackgate&# story. In a nutshell – I think airbnb eventually got to the right place and I was impressed with the letter their founder Brian Chesky wrote and their new commitment to safety and damages.

PR 329

PR Management Startup Vietnam 329