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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!” Operating Costs. They both raised angel / seed money of $1.5 million to fund operations in their first year of operations.

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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. Of course, upcoming IPOs like Snapchat will bring some added excitement to the industry. If you’re enthusiastic about these themes as an entrepreneur, investor, or operator, please reach out! Looking ahead to 2017.

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Should Startups Care About Profitability?

Both Sides of the Table

They both raised angel / seed money of $1.5 million to fund operations in their first year of operations. After all, they doubled their operating costs when they weren’t even profitable. They used the money to hire a bigger tech team so they could roll out their second product line. Again, it depends.

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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. So at any given point you are likely operating with a maximum of 9 month’s cash. Many times it’s less. And yet you have to.

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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. 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. What about in the public markets?

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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. So at any given point you are likely operating with a maximum of 9 month’s cash. Many times it’s less. And yet you have to.

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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.