Startup Professionals Musings

JANUARY 12, 2013

Many entrepreneurs I know don’t realize that the language they learned in the corporate world, or even their recent MBA class, won’t get them ahead in the startup world today. As a reality check, try this quick test of your entrepreneur savvy. As a reality check, try this quick test of your entrepreneur savvy. Ramen-profitable.

Entrepreneur 274

Entrepreneur Accredited Investor Silicon Valley Angel Investor 274

Steve Blank

JUNE 11, 2009

Other Roles in a Startup Generic advice given to entrepreneurs assumes that everyone is going to be the founder/co-founder. Yet for every founder there are 10-20 other employees who take the near-equivalent risks in joining an early-stage company. By now the company may have found and settled on a repeatable business model.

Cofounder 229

Cofounder Founder Silicon Valley Technical Cofounder 229

Gust

JANUARY 4, 2012

Many thanks to David Rose , Ilana Grossman , Justin Stanwix , and the whole Gust team for making the Gust Blog such a valuable platform and resource for entrepreneurs and angel investors. What kind of risk do we run of being put out of business by others’ IP rights ?

Intellectual Property 143

Intellectual Property IP Startup United States 143

thebarefootvc

JANUARY 27, 2014

I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy. Or so it seems.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

YoungUpstarts

NOVEMBER 19, 2017

Thus, more entrepreneurs can rise up to the challenge and innovate. Venture capital fundraising can be divided into three stages: seed, early stage, and later stage. According to the same report by KPMG, the median deal size is the largest for later-stage funding, at $26 million.

Venture Capital 196

Venture Capital Asia Artificial Inteligence Later Stage 196

Austin Startup

MAY 11, 2017

We make a majority of our investments in those sectors and prioritize proven business models. Arena Growth Partners | Venture Capital and Private Equity | Austin, Texas - Venture to Lead™ Aspect Ventures We bridge the gap between your seed and later stage venture so together, we can turn great ideas into great companies.

Private Equity 48

Private Equity Venture Capital Technical Review Seed Stage 48

Reid Hoffman

MARCH 9, 2021

This can serve as a guiding light to other entrepreneurs and CEOs. These innovations are impactful, but there are also ample opportunities to innovate purely on the business model. That’s a statement of business innovation, not technological innovation. I helped establish the business model.

Leadership 45

Leadership Technical Review Cofounder Later Stage 45

View from Seed

APRIL 30, 2015

From a company milestones perspective, entrepreneurs who take on venture debt are almost always thinking about raising that next round of capital from other institutions. GM: The model is more about the relationship with the entrepreneurs, the investors, and us as the bank, as opposed to cash flow or fixed assets to lend on.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Seeing Both Sides

AUGUST 28, 2017

Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. Put aside the frauds and hucksters — time and transparency will cause them to shake out — and obviously not every business model is a fit for an ICO. But many are. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. Put aside the frauds and hucksters — time and transparency will cause them to shake out — and obviously not every business model is a fit for an ICO. But many are. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

The Next Web

AUGUST 26, 2013

It’s part three of a series, cross-posted from his own blog , in which he draws on his experience to offer advice for aspiring entrepreneurs in Europe and beyond. So far I have shared with you 9 simple steps to start your own tech business ((don’t miss part 1 , part 2 , and part 3 ). Skype), and I wouldn’t be where I am without them.

Management 120

Management Cofounder Startup Bootstrapping 120

Startup Professionals Musings

SEPTEMBER 11, 2013

In the old days, every entrepreneur dreamed of someday taking their startup public, and making it a multi-national powerhouse. In my view, the key reasons that IPOs have lost their luster from an entrepreneur and investor perspective include the following: The US IPO process seems broken. Marty Zwilling.

IPO 242

IPO SEC Prospectus Startup 242

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future. Depending on which keywords you target, it can also be inexpensive.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

YoungUpstarts

JANUARY 9, 2017

One of the most important factors in becoming a successful entrepreneur is managing finances. Whether early or later-stage, the growth of every company most often depends on how much capital is available to fund its growth. Define Your Business Model. by Tina Hay, founder and CEO of Napkin Finance.

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

Steve Blank

SEPTEMBER 2, 2015

Resilience – the ability to bounce back from adversity – is one of the key attributes of entrepreneurs and was the focus of my first weekly radio show, Entrepreneurs are Everywhere , on Sirius XM Radio Channel 111. Sometimes the best lessons are the most painful. There are 3500 students that signed up for this.

Entrepreneur 120

Entrepreneur New York Cofounder Equity 120

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. If you have a proven business model with some sales, it’s credible to apply a multiplier of five to 10 times this number for the first element of valuation.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Steve Blank

NOVEMBER 30, 2011

Watching an entrepreneur fail is sad, but watching but watching them fail from a lack of nerve is tragic. Bob had taken to heart the business model canvas and Customer Development lessons. After a demo and lunch, the VC (who normally did later stage deals) wrote my ex student a check for a seed round. Steve Jobs.

Customer Development 332

Customer Development Cofounder Later Stage Software 332

Both Sides of the Table

JUNE 28, 2010

One of the most difficult things to do as a first time entrepreneur is to get to know the investors you might be working with if you accept money. He got into the industry through the same traits required for entrepreneurs – persistence & resiliency. I’ve already started the business modeling.

San Francisco 230

San Francisco Los Angeles Cofounder SMS 230

cdixon.org

AUGUST 3, 2012

Entrepreneurs and investors have been enamored with consumer internet startups for the last few years. Some observations: - Thousands of early-stage consumer web/mobile companies were started and funded in last 24 months. But there are signs this is ending.

Bridge Financing 86

Bridge Financing Early Stage Valuation Later Stage 86

Growthink Blog

MAY 10, 2012

You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Later Stage Investment (Series C, D, and so on) 5. Series B is the round that follows series A in early stage financing. Pre-Seed Funding 2. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

The Entrepreneurial Mind

JUNE 14, 2010

They do play a role, but only a limited one with later stage businesses that have good cash flow. Any start-up loans will be to the entrepreneur as a personal loan. But, with plummeting property values over the past three years, there ain't much water in that well for many younger entrepreneurs.

Kentucky 56

Kentucky Washington Nashville Bootstrapping 56

Startup Lessons Learned

MAY 31, 2019

The reality today is that capital is more available than ever and entrepreneurs have become more sophisticated, so founders are looking for more than just cash from their venture backers. They’re looking for guidance on building the company, the ability to tap into a VC’s network, and help with potential business opportunities.

Lean 108

Lean Venture Capital Conversion IPO 108

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Chris Dixon, Partner, A16Z, observes , “Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

JANUARY 21, 2021

With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models. David Teten , Versatile’s founder, was previously a Partner with HOF Capital and ff Venture Capital, two early-stage New York VC firms.

Equity 78

Equity Revenue Cofounder Colorado 78

Steve Blank

JUNE 11, 2013

For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. When you take money from investors their business model becomes yours. Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model.

Venture Capital 334

Venture Capital IRR Liquidity Event Business Model 334

Seeing Both Sides

OCTOBER 6, 2010

Later stage investors may have downside protection if they buy smart, but early-stage VCs do not. That is why VCs tend to emphasize “clean terms”, which are entrepreneur-friendly rather than focus on complex bells and whistles to protect downside. Entrepreneurship is all about people.

Omaha 35

Omaha Due Diligence Silicon Valley Stock 35

The Next Web

JULY 29, 2013

It’s part two of a series, cross-posted from his own blog , in which he draws on his experience to offer advice for aspiring entrepreneurs in Europe and beyond. The main hub for starting a tech business is currently San Francisco. It’s an amazing city, full of people working at tech businesses, and ready to start the next big thing.

San Francisco 125

San Francisco Cofounder Germany Europe 125

Steve Blank

JUNE 11, 2013

For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. When you take money from investors their business model becomes yours. Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model.

Venture Capital 226

Venture Capital IRR Liquidity Event Business Model 226

Both Sides of the Table

JUNE 29, 2011

Others have chased earlier-stage but lack the skills or relationships to do this effectively. Some have moved into later stage investments in an effort to “put logos on their websites.&# Surprisinly, this strategy works well with many entrepreneurs. I’m less sure it will work well for returns. Funny, that.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Reid Hoffman

JANUARY 19, 2021

When entrepreneurs gather to swap war stories, whether they’re meeting in person or virtually, one of the biggest categories of horrific tales are bad board stories. Every entrepreneur I know has them; I’ll even share a few of my own in this essay. They were right that I was a baby entrepreneur and had made a lot of mistakes.

Startup 36

Startup Cofounder Advertising Hiring 36

Both Sides of the Table

FEBRUARY 14, 2016

Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. ” “This will be great for VCs and bad for entrepreneurs.” What is the True Sentiment of VCs? ” “Sure, prices are dropping.

Valuation 150

Valuation Down Round Startup Later Stage 150

Reid Hoffman

OCTOBER 17, 2018

This meant hiring someone who had experience with much bigger organizations, the idea being that their experience would come in handy at a later stage. The Darwinian competition is so fierce that your organization needs to be all-in on the current stage of scaling. In today’s startup world, this rule no longer applies.

Finder 28

Finder Rhode Island Cofounder Engineer 28

techcrunch.com

OCTOBER 23, 2010

It is the first in a series of posts he’s writing about the decisions a young entrepreneur needs to make when she/he is first starting a business. One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

abovethecrowd.com

JULY 7, 2015

My partners and I have noticed an interesting trend over the past few years: an increase in the number of entrepreneurs who prefer to pitch us without the use of a presentation deck. Efficiently communicating your strategy, business model, and competitive differentiation is required for many critical things you will do as a company.

Warrant 40

Warrant Later Stage Forecast IPO 40

Hippoland

JANUARY 16, 2017

As an entrepreneur, it never even crossed my mind to think about how investors decide which companies to invest in. Sometimes, it’s not the product or the user experience that makes this 10x difference - sometimes it’s in the business model, but I’ve found usually, it ends up trickling down to the user experience as well.

Startup 48

Startup Later Stage Founder Business Model 48

Professor VC

DECEMBER 8, 2015

one company running out of cash and another with cash but searching for a business model). What does this mean for entrepreneurs and investors? I've written previously ( here and here ) about the issues with private companies merging in an acquihire or other downside scenario (i.e. Hope that changes in 2016.

Merger 28

Merger LP IPO Redemption 28

David Teten

MARCH 18, 2021

2) Business model-defined funds. For example, Point Nine Capital focuses on B2B SaaS and marketplaces at the seed stage, across many industries. B2B vs B2C) within the business model preference. . 4) Entrepreneur-defined funds. “software”); 43 invest in 2 types of technology (e.g.,

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78