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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

It turns out that to build a successful company you ultimately need this strange thing called “revenue” that people don’t just hand you: You need to earn it. And there’s this other thing called “gross margin,” which shows the quality of your revenue. How much ad revenue does TripAdvisor make?

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Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

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Timing: When to raise seed funding.

Scalable Startup

High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). The idea of outsiders entrusting them with a million dollars to spend is intoxicating. Without funding most tech startups will die.

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Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

In January, Denver will become one of the few American cities that allows its residents to purchase and recreationally consume marijuana, a move that is expected to create jobs and generate tax revenue. Colorado houses existing tech giants such as IBM, Oracle and Lockheed Martin, as well as an emerging and thriving startup scene.

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Traction vs. Product

Rob Go

For most companies, this means top-line revenue, but in some cases it’s more about numbers of active users or number of customers. You might do tons of stuff manually to fulfill the promise of your service instead to taking more time and using more resources to build software.

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Making Sense of Seed Investment Data

Rob Go

In our view, seed rounds are the new normal for most early stage software based companies. What’s also the new normal is that the majority of seed funded companies raise some money before their seed round from angels. Seed rounds can look like a company that is pre-product or has an early product prototype.