Steve Blank

MAY 19, 2015

These shortcuts add up and become what is called technical debt. You fix technical debt by refactoring , going into the existing code and “cleaning it up” by restructuring it. Organizational debt was coming due. And the size of the problem increases with the success of the company. Refactoring” organizational debt.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Both Sides of the Table

FEBRUARY 12, 2019

The reality is that as a result of two major trends the costs of starting a technology startup went down massively. So What Impact Did the Drop in Tech Founding Costs Have on VC? was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Both Sides of the Table

JUNE 28, 2018

My friend Michael Broukhim, founder & co-CEO of FabFitFun and I recently had a catch-up meeting for 3-miles on the Santa Monica “Bird Trail” No company has ever elicited so many questions by friends, colleagues, entrepreneurs, fellow VCs and journalists as has Bird, the company that pioneered the electronic scooter as a service market.

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

VC Cafe

APRIL 4, 2024

How can startups even compete against big tech, scale ups and other startups? While investments to generative AI startups are red hot, founders have to battle quite a few investor biases. Despite being less than 2 years old, Mistral is now looking to raise funding at a $2 billion valuation in December 2023.

Generative AI 78

Generative AI Artificial Inteligence Technical Review ChatGPT 78

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. I can tell you that many founders make an egotistical mistake to launch in as many markets as possible as quickly as possible and the temptation was certainly there at MakeSpace.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Founder: “$8–10 million” VC: “What’s your current burn rate?” Founder: “$250k / month.” Founder: “Um. Why are you raising so much?” Let me check my plan.”

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Our categorization is not a technical one.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Austin Startup

FEBRUARY 11, 2020

Benjamin Nadareski of DrumG , which solves data ownership and a broken valuations industry. The Forrest Four-Cast: February 11, 2020 One of 50 finalists for SXSW Pitch 2020 , DrumG is a global technology firm that builds and operates financial market applications and networks.

Technical Review 62

Technical Review New Jersey Valuation Singapore 62

Austin Startup

FEBRUARY 11, 2020

Benjamin Nadareski of DrumG , which solves data ownership and a broken valuations industry The Forrest Four-Cast: February 11, 2020 One of 50 finalists for SXSW Pitch 2020 , DrumG is a global technology firm that builds and operates financial market applications and networks. DrumG is located in New York, London, Singapore and Bermuda.

Technical Review 62

Technical Review New Jersey Valuation Singapore 62

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

FEBRUARY 16, 2017

Every tech or major news journal in the country is preparing to write their Snap, Inc (creators of Snapchat, Spectacles, etc) stories and many of them seem to want a “How does it feel to have missed this investment story.” We felt proud to be the lead investor in Maker Studios at a sub $5 million valuation. I didn’t do that.

IPO 214

IPO Los Angeles Technical Review Silicon Valley 214

VC Cafe

JANUARY 27, 2021

Towards the end of 2020, however, the company’s shares were trading lower — potentially due to profit-taking — but also perhaps because of the many alternatives that had sprung by then like virtual mushrooms after a pandemic. It managed to overcome security and privacy controversies and maintain a stronghold in video-call land.

Vertical 148

Vertical Video Technical Review Europe 148

Steve Blank

APRIL 5, 2017

This is often a tough concept for engineering founders who believe that if we just tell customers about the features that make their product faster, cheaper, etc. For example, to outflank a competitor who had faster products, Intel moved the conversation about microprocessors away from speed and technology to create a valued brand.

Marketing 316

Marketing Audience Technical Review PR 316

Both Sides of the Table

AUGUST 14, 2017

I read commentary or Twitter or blogs and realize that there are also strongly held convictions that there are these evil VCs who do terrible things to mostly altruistic founders. But unlike the popular press reporting of this conflict — 80% of the time it is founder-to-founder conflict and not investor-to-founder conflict.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? You’ll find exceptions to this rule, like Snapchat, which was operating at a loss at its IPO, when it experienced high initial trading prices due to its huge popularity and untapped monetization capabilities.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price. “Guys, I accept that we could probably shop this around but we could also end up with nothing. Morgan Stanley had proposed a higher valuation to let them in.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Proposed private equity deal: Eventually, this business will require private equity to provide sufficient funding to develop some of the more robust aspects of the technology that will attract Fortune 500 clients.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

betashop.com

OCTOBER 8, 2012

90 Things I’ve Learned From Founding 4 Technology Companies. On October 27, 2010 I wrote a blog post about the “ 57 Things I Learned Founding 3 Tech Companies.”. 90 Things I’ve Learned Founding 4 Tech Companies: Find your company’s One Thing. ?? Fab.com Fab Feed Bradfords Blog. So, here goes.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Both Sides of the Table

FEBRUARY 27, 2019

How Most Board Meeting Prep Works I’ve been sitting on tech boards for two decades so I have some experience with what goes wrong. If polled a week before the board meeting a good number of founders would say, “I wish we could delay this meeting a couple of weeks” or “I really could do without having this board meeting at all.”

Stock Options 226

Stock Options Metrics Stock Valuation 226

This is going to be BIG.

OCTOBER 12, 2020

Moat, the biggest exit out of the bunch, was sourced when I met Mike Walrath at a tech event. That leaves me out raising with two funds under my belt and no big exit and no unicorn valuations. One of my founders texted me, “What are you telling people to do about the Coronavirus?” It was the first anyone had asked me about it.

LP 147

LP Technical Review Software Review Valuation 147

Austin Startup

JULY 18, 2018

2017 Capital Factory Accelerator Diversity (out of 61 companies) We know that there is a systemic discrimination problem in the tech industry caused by hundreds of years of institutional racism. Diversity in tech and in business leads to greater chances of success. We organize Blacks in Tech and Women in Tech summits.

Technical Review 56

Technical Review San Antonio Houston Software Review 56

Duct Tape Marketing

FEBRUARY 3, 2022

Amanda is the Co-founder at Barney an M&A firm that specializes in the digital marketing space. Since 2015, her company, Barney, has guided over 150 media, marketing & tech companies through acquisitions. 17:49] Have you ever experienced a transaction where a Founder sold the company to their existing team? [18:35]

Entrepreneur 76

Entrepreneur Technical Review Cofounder Valuation 76

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

As you’d suspect, I was similarly ignorant of such things while watching the sale of ITWatchDogs (where I was a co-founder), and still harbored misconceptions as I went into the sale of Smart Bear. There’s many possibilities, each of which will cause a different valuation of your company. Let’s start with the buyer.

Sales 260

Sales Channel Cofounder Valuation 260

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. A good example is the marketing technology sector. No further conversations ensued.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. So it might actually be more productive for you to improve your conversion than to improve your ad buying, for example.

Metrics 150

Metrics Cost Acquisition Startup 150

Up and Running

SEPTEMBER 5, 2017

To draw titular inspiration from a New York Magazine article entitled Ellen Pao and the Sexism You Can’t Quite Prove (we’ll talk more about Pao later on), I entered into this topic less with the desire to try to “prove” a specific point, but rather to explore an issue that continues to rise to the top of conversation in the entrepreneurial space.

Venture Capital 82

Venture Capital Lean Cofounder Technical Review 82

Agile VC

MAY 26, 2011

AGILEVC My idle thoughts on tech startups. Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. How to Evaluate Firms for a Seed VC.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Austin Startup

AUGUST 20, 2017

There are many ways to measure technical skills and check work histories and achievements, but assessment of team chemistry is a high art form. Keep the valuations consistent with company progress. Kalanick, former investor BFF turned highly disappointed by founder behavior. Even for ISO’s, have you heard of form 83(b)?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

techcrunch.com

SEPTEMBER 2, 2012

Sometimes these loans have a valuation cap and/or a discount. Today, TheFunded.com and the Founder Institute is announcing in conjunction with law firm Wilson Sonsini, Convertible Equity, a startup-friendly seed-financing vehicle intended to replace Convertible Debt notes. FOUNDER INSTITUTE. Company: Founder Institute.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Pascal's View

JULY 9, 2017

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

YoungUpstarts

FEBRUARY 14, 2017

by Jon Leighton, Director of digital agency iResources and founder of neatly.io. Pivoting’ is spoken about a lot in the tech world. I spoke to a founder recently about a pivot; they offered an ad tech solution to enterprise clients and had just spent six months on a new feature. Is it clear?

Technical Review 157

Technical Review Architecture Revenue Channel 157

Small Business Force

AUGUST 31, 2013

Picking a partner or co-founder isn't like finding a new friend. This absolutely requires thoughtful and sober due diligence by both partners as they approach not only how the business relationship will be structured and will work, but, if it comes down to it, how it will end. You think about it ahead of time!

Cofounder 40

Cofounder Partner Technical Review Founder 40

Hunter Walker

JANUARY 5, 2014

” If you’re in the technology industry you can probably answer but as I discovered this holiday season, most of my extended family and childhood friends were a bit fuzzier on the concept. Meeting new founders while collaborating, recruiting, analyzing, doing whatever it takes, to help our current founders build strong companies.

Software Review 102

Software Review Balance Sheet Cofounder Technical Review 102

Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Co-founder & CEO Steve Hafner and the business team are based in Norwalk, CT. How to Evaluate Firms for a Seed VC. April 17, 2011.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113