article thumbnail

VC Seed Funding is Dead, Long Live VC Seed Funding!

Both Sides of the Table

A few years ago it became fashionable for large VC’s to do seed funding. With open source software (LAMP stack) and cloud computing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. If a VC term sheet comes in they begin their due diligence process.

article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

Operating Costs. Fast early growth in a market is often eroded when competition gets fierce and prices are forced down due to competition. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). They both raised angel / seed money of $1.5

Startup 418
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

6 Tips for Coming Up With Your Million-Dollar Business Idea

Up and Running

In the early 1990s, my brother was working for a company that was going through the roof selling shareware software via catalog. David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank. The company operates on six continents and boasts more than 250,000 graduates worldwide.

Detroit 156
article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Debt also has a due date and interest rate to negotiate. “From a diligence perspective, trolling appears as a blemish on the company,” said Fisher. Debt or convertible securities (e.g., ” Intellectual Property.

article thumbnail

Which language should my startup use?

www.reincubate.com

Share this: net c# development django java language php software Were often asked by entrepreneurs which language their startups should adopt when developing their technology. It can be difficult -- without experience building software -- to make an informed choice which is most suitable. PHP is insecure? Ruby on Rails doesnt scale?

article thumbnail

Where to Get Feedback on Your Business Pitch

Up and Running

Drawing on advice from our own Tim Berry, founder of Palo Alto Software and Josh Cochrane, our VP of Product Development, I’ve broken down a few of the different options for entrepreneurs looking for feedback on their pitch. They ended up with a nice pitch, and approximately $300K in seed money.”. Operated by the U.S.

article thumbnail

How to Fund a Startup

www.paulgraham.com

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. It wasnt because they werent accredited investors that I didntask my parents for seed money, though.