Both Sides of the Table

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How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

Legal threats from other IP holders? We hired Steve Pease to run finance and then eventually all operations and it has transformed how we operate. One area I’ve had much discussion with the companies in which I’ve invested in is bringing on board an operationally focused CFO. Who is dealing with trademarks?

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Operating Costs. million to fund operations in their first year of operations. In many Internet startups 80% of the operating costs will be people. Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

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How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP. For a very small fee they can get your Delaware C corp registration, make sure that you have IP protection and ensure you didn’t make an early bumbling mistakes that you’ll pay for dearly in the next 7-10 years of hard work.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Developing O&O (owned & operated) businesses (outside of YouTube). Give access to music that is legal, avoiding lawsuits and ensuring revenue isn’t captured by other IP owners. If you’re thinking about building an online video network today you need to think about: Producing your own content (not just aggregating).

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In a Strong Wind Even Turkeys Can Fly

Both Sides of the Table

Accenture opened massive operations in India & China and continued its industry dominance. It’s why as an investor I look for talented teams with long-term vision, a unique point-of-view, differentiated IP and a desire to build something enduring. Double-down on great people, process & IP.

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The Long-Term Value of Loyalty

Both Sides of the Table

Most of what I learned about operating startups I learned from the really tough years at my first company from 2001-2003. They seed funded my second company and even let me buy some IP in exchange for debt to get started. There is a lot of long-term value in loyalty. The things you learn in tough environments.