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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you hire 6 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 for 4-6 months. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Hiring more people isn’t always the right answer.

Startup 418
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Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

They either do too many seed investments (for which they can spend no quality time with any) or they treat it as an option (“if you succeed come back and see us and we’ll match any term sheet you get&# ) – they view it as a sort of “right of first refusal.&#. The signaling affect is overrated. the $190 million).

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How to Start a Startup

www.paulgraham.com

They all use the same simple-minded model.They seem to have approached the problem by thinking about how todo database matches instead of how dating works in the real world.An Andyet theres a lot of money at stake. One of the best tricks I learned during our startup was a rule for deciding who to hire.

Startup 105
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To Follow On or Not to Follow On

This is going to be BIG.

I think I'm terrific at helping early stage teams by rolling up my sleeves and doing what's necessary--getting them hires, PR, product strategy help to find that market fit. What I'm not good at--or, rather, simply haven't done yet, is sit on a board for seven years helping a company go from $20mm in revenue to $100 million in revenue.

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Get Off My Lawn! Crazy Kids and Their Sex, Drugs and Startup Advice!

This is going to be BIG.

A founder will raise one party round worth of seed money and they''ll go teach a class on how to raise venture capital. A BD person at an aqui-hire will write a book on the art of the deal. Your advice matches the experience of your accomplishments. Growth hacking? Don''t get me started. But, managing your career?

Startup 147
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Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Google Ventures has made more than 100 seed investments, Maris said, including some past and present Y Combinator companies, and is making one to two new ones a week. Parse, one of the most-anticipated startups in Silicon Valley these days , went through Y Combinator last year and raised seed money from Google Ventures , for example.