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Should Startups Focus on Profitability or Not?

Both Sides of the Table

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!” So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. They both raised angel / seed money of $1.5

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Snaptrip case study – Solo founder hypothesis in action

The Equity Kicker

With no team and no technical expertise Matt was planning to find a team and build out some product before starting to raise some seed money. The timing often depends on previous experience, key hires and the growth of the business. Our unique model allowed him to get started straight away. USER RESEARCH.

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A conversation with Scott Kupor of Andreessen Horowitz, author and speaker at Lean Startup Conference 2019

Startup Lessons Learned

It’s meant to support and grow a business until an “exit” in the form of an IPO, a merger or acquisition, or in less than ideal scenarios, a company shutdown. First, the introduction of seed money as an institutional form of capital. Let’s start with the venture side of the equation, where we’ve seen two major shifts.

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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

We know this: As many as a thousand companies who’ve received seed rounds won’t be around in a year — maybe six months. There simply won’t be soft-landings and acqui-hires for all of them. The number of seed and angel investors has exploded in recent years, buoyed up by a number of factors.

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Tamp down the enthusiasm your naive family has about your “impending IPO” (honey, when can we buy shares? You hire them, you own them now. Pottery Barn rule.

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How to Fund a Startup

www.paulgraham.com

Once you take money from the generalpublic youre more restricted in what you can do. [ In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem.