A Smart Bear: Startups and Marketing for Geeks

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Why it’s nice to compete against a large, profitable company

A Smart Bear: Startups and Marketing for Geeks

All a little startup has is a decent idea and extremely greasy elbows. A company with a large, profitable, growing revenue stream betrays facts useful to a startup: There’s a huge market to be had (else it wouldn’t be large and growing). So if a startup cuts prices by 50% or 80%, the big company cannot chase. Not anymore.

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Should I invest my savings in this startup?

A Smart Bear: Startups and Marketing for Geeks

This is part of an ongoing startup advice series where I answer (anonymized!) Employee-Investor writes: I’ve been invited to join as startup as employee #1. Should I invest my $95k at a $1m valuation to bring my total stock allocation into the double-digits? I have $95,000 saved from a previous exit.

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The wrongness of relativism

A Smart Bear: Startups and Marketing for Geeks

Was there any startup founder who didn’t feel depressed when that happened? Another collective sigh shudders through the ranks of startup founders, as we grumble over our trifling grindstones. Instagram had 13 employees when they sold for a billion dollars. Yes, depressed. They’re next!

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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

Startups shouldn’t act smug about this. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). This acquirer doesn’t care about the financials of the startup. Remember this is revenue , not valuation. Zoom out to see the strategic decision.

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How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? Hard to know, but an important question for a bootstrap startup to answer! What about $Y/mo?&#

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A vote for me is a vote for dipshit businesses everywhere

A Smart Bear: Startups and Marketing for Geeks

It answers questions like "How do I get the courage to just start when I know so little about what it's really like at a startup?" They point out that very few angel funded startups end up very big or interesting. “An and "How do I balance the utility of learning from others with wanting to go my own, unique way?".

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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

Witness, for example, this terrific Fast Company article on Bill Nguyen , serial entrepreneur who’s seventh startup “Color” famously raised $41m for a new mobile app before it even launched. The launch, by the way, was a failure. And it’s now bankrupt.)

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