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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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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.

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From Nothing To Something. How To Get There.

techcrunch.com

or just present your crappy, first-run code to investors then pay someone to re-write the entire thing. The contract work burn out is totally where I’m coming from… chip WAAIIITTT… wasn’t the coding of the first version of Digg outsourced to some guy on Elance? What did you do again? Who knows.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

“I wouldn’t expect anyone except seed investors to complain about it,” Graham says. “Founders don’t think their problems are due to trends. If you are raising a seed round now, there are a few things you can do to protect yourself. And in fact, overall trends are a second-order effect for founders.”