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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!” They both raised angel / seed money of $1.5 There are certain topics that even some of the best journalists can’t fully grok.

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A Year in Review: 2016

Version One Ventures

At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years. This can set up a perfect storm if early-stage companies don’t manage their expectations and reality properly. Of course, upcoming IPOs like Snapchat will bring some added excitement to the industry.

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Should Startups Care About Profitability?

Both Sides of the Table

They both raised angel / seed money of $1.5 That management team might have decided that they wanted to maintain more control of their company, didn’t want new board members and didn’t want to take dilution. Like all things of course there is a trade-off between payout out rewards to owners and paying out rewards to management.

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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? Many times it’s less.

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

Startup Lessons Learned

Scott Kupor is the managing partner at Andreessen Horowitz, where he’s responsible for all operational aspects of running the firm. He's been with the firm since its inception in 2009 and has overseen its rapid growth, from three employees to 150+ and from $300 million in assets under management to more than $10 billion.

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

Gust

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? Many times it’s less. she’s so successful! we always knew she would be.

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

The VCs basically have liquidity in management fees along the way, in the sense they get paid decently along the way. At some point, this breaks if their isn’t an exit or IPO. I know that eventually if your company is out of cash and you need the money you’ll take it even on punishing terms. It’s your baby.

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