Both Sides of the Table

SEPTEMBER 15, 2022

We could talk with customers, meet the entire management team, review financial plans, review customer purchasing cohorts, evaluate the competition, etc. Of course our execution against the strategy has had to change but the strategy has remained constant. In 2009 we could take a long time to review a deal.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Startup Professionals Musings

SEPTEMBER 10, 2018

Value factors include your related product breadth and depth, relationships with thought leaders, key vendors, and large potential customers. Of course, all co-founders need to remember that allocated percentages will be diluted as angel and VC investors are brought in. Textbook knowledge and academic degrees don’t count here.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

APRIL 27, 2019

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Customer support chasm. Product development chasm.

Technical Review 255

Technical Review Dilution Early Stage Product Development 255

Startup Professionals Musings

AUGUST 4, 2014

Value factors include your related product breadth and depth, relationships with thought leaders, key vendors and large potential customers. Of course, all co-founders need to remember that allocated percentages will be diluted as angel and venture capital investors are brought in. Key to required patents or trade secrets.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

AUGUST 31, 2018

As the Global Customer Growth Evangelist at Salesforce, with implementation roles at many other companies, she makes a host of relevant observations for every business owner. These days, customers remember the total experience with a company longer than they remember the price they paid. Find ways to work with your competition.

Angel Investor 167

Angel Investor Dilution Software Review Distribution 167

Startup Lessons Learned

JULY 5, 2010

I believe it is the best introduction to Customer Development you can buy. As all of you know, Steve Blank is the progenitor of Customer Development and author of The Four Steps to the Epiphany. I have personally sold many copies of his book, and continue to recommend it as one of the most important books a startup founder can read.

Customer Development 166

Customer Development Developer San Francisco Customer 166

Startup Professionals Musings

OCTOBER 13, 2021

For example, a few years ago, the company Beepi had a vision to build a new market for buying and selling used cars, but became overly focused on fundraising to grow fast, and ignored many customer complaints. It’s easy to say “yes” to one more feature request after another, until the potential for real impact gets diluted.

Dilution 334

Dilution Metrics Acquisition Revenue 334

Both Sides of the Table

MARCH 19, 2013

The most important way to sell a product for an early-stage business (or frankly any stage) is to have strong referenceable customers. How do you get referenceable customers? Your project is forked without a rollout organization, communications, measurement, integration and without turning sales into referenceable customers.

Technical Review 403

Technical Review Software Review Startup Churn Rate 403

Startup Lessons Learned

OCTOBER 26, 2009

Lessons Learned by Eric Ries Monday, October 26, 2009 A real Customer Advisory Board A reader recently asked on a previous post about the technique of having customers periodically produce a “state of the company&# progress report. Many companies seek to involve customers directly in the creation of their products.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

Startup Professionals Musings

AUGUST 24, 2016

Value factors include your related product breadth and depth, relationships with thought leaders, key vendors, and large potential customers. Of course, all co-founders need to remember that allocated percentages will be diluted as Angel and VC investors are brought in. Textbook knowledge and academic degrees don’t count here.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Startup Professionals Musings

DECEMBER 18, 2013

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Customer support chasm. Product development chasm.

Entrepreneur 252

Entrepreneur Marketing Technical Review Dilution 252

Startup Professionals Musings

NOVEMBER 10, 2012

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Customer support chasm. Product development chasm.

Startup 254

Startup Technical Review Dilution Early Stage 254

Startup Professionals Musings

NOVEMBER 7, 2022

Even with advantages that independent startups can never hope to match, including brand recognition, customers, financial capital, and distribution, I don’t often see the entrepreneurial passion for innovation, agility, and team perseverance exhibited by new startups. If now where you are today, look around for new job opportunities.

Advisory Board 359

Advisory Board Incubator Dilution Agile 359

Startup Professionals Musings

JULY 23, 2021

For example, a few years ago Wells Fargo seriously damaged its brand trying to grow the business by creating accounts without proper customer consent. This resulted in lawsuits and fines, angered many new customers, and the Wells Fargo brand is still recovering. Yet every change can cause brand dilution or competition you don’t need.

Leadership 426

Leadership Management Brazil Differentiation 426

Startup Professionals Musings

JANUARY 31, 2020

Here are some of the key entrepreneur characteristics most often overlooked by inventors: Driven by customer-centric view of needs, rather than technology. Understanding what drives customers to buy, in different market segments and cultures, is usually just as challenging as creating and combining technology to deliver function.

Founder 312

Founder Intellectual Property Dilution Startup 312

Startup Professionals Musings

DECEMBER 29, 2021

I’m often surprised when you as an aspiring entrepreneur, looking for investors, tell me your solution is so innovative that you don’t have to worry about differentiating it from competitors, and customers will flock to it without a real marketing campaign. Focus your marketing on real customer value. Perception is better than reality.

Restful 336

Restful Differentiation Social Media Dilution 336

YoungUpstarts

APRIL 19, 2012

When not approached carefully, growth can destroy value as it outstrips a company’s managerial capacity, processes, quality, and financial controls, or substantially dilutes customer value propositions. Every business must continually improve its customer value proposition better than its competition in order to stay viable.

Dilution 175

Dilution Virginia Management Washington 175

Both Sides of the Table

MARCH 21, 2013

This might mean helping customers buy traffic, arb’ing deals, helping with RTB pricing or trading, etc. Minimize Any Custom Work That Will Not Feed Back Into Your R&D. While I’d like to say that you should never do custom work that changes the scope of your product that’s not wholly realistic.

Software Review 321

Software Review Software IP Technical Review 321

View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. Competition matters when it comes to talent, customers, funders, partners, attention, and others. If the company wasn’t that capital efficient, the fund may end up owning 2.5% in a mid stage round at a $100M post.

IRR 205

IRR Dilution Founder Portfolio 205

Startup Professionals Musings

JULY 31, 2012

You need full control of your core technology, so I suggest you supplement your own expertise as soon as possible, to tackle the never-ending technical questions of architecture, competition, scalability, and customer support. Focus on finding the right partner to double your strength rather than dilute it. Marty Zwilling.

Technical Review 230

Technical Review Technology Founder Management 230

Startup Professionals Musings

SEPTEMBER 13, 2011

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Customer support chasm. Product development chasm.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

This is going to be BIG.

JANUARY 18, 2024

Instead of getting hung up on what their better-funded competition was doing, they focused on executing on their near-term goals, then setting new ones, then executing on those, and so on and so on, all the way up to a billion-dollar acquisition with very little dilution taken along the way.

.Net 88

.Net Cap Table Startup Technical Review 88

Startup Professionals Musings

DECEMBER 11, 2022

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Here is my list of red flags that cause many investors to look elsewhere: No well-defined need or viable customer set.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

NOVEMBER 5, 2022

They are more sensitive to customer needs and see peer collaboration as the most effective decision process. Modern Internet communication and video meeting software have given new scope and immediacy to communal work efforts and customer feedback. Office jobs and communication technology have evolved.

Management 333

Management Dilution Forecast Leadership 333

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. Focus on your customers and don’t obsess about deals or keeping up with your competitors releases.&#. It has awesome features that my main competitor doesn’t have. BUT … it’s your company.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Use “white label” or custom contract for extra income.

Dilution 404

Dilution Incubator Government Bootstrapping 404

Startup Professionals Musings

FEBRUARY 27, 2023

Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations. If looking for help, you can find interns willing to work for the experience, and real insights into new customer segments. Get help with grant funding and incubator resources.

Arizona 276

Arizona Accredited Investor Intellectual Property Entrepreneur 276

View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. Competition matters when it comes to talent, customers, funders, partners, attention, and others. If the company wasn’t that capital efficient, the fund may end up owning 2.5% in a mid stage round at a $100M post.

IRR 156

IRR Dilution Founder Portfolio 156

Startup Professionals Musings

FEBRUARY 14, 2021

They are looking for startups that have a sustainable advantage over direct and indirect competitor offerings, as well as obvious value to customers living without your product today. Non-specific terms, like better usability and low cost don’t incite customers to action these days. Investors check connections.

Intellectual Property 417

Intellectual Property Angel Investor Dilution Differentiation 417

Startup Professionals Musings

MAY 11, 2011

You need full control of your core technology, so I suggest you supplement your own expertise as soon as possible, to tackle the never-ending technical questions of architecture, competition, scalability, and customer support. Focus on finding the right partner to double your strength rather than dilute it. Marty Zwilling.

Technical Review 236

Technical Review Partner Entrepreneur Dilution 236

The Startup Magazine

JULY 25, 2021

But existing shareholders are not happy with the company’s proposed plan to issue $500 million in new shares as it would only dilute its current float. You should focus on making your startup irresistible to investors without opting for a dilutive capital raise. Boost customer satisfaction. Understand market share .

Valuation 158

Valuation Artificial Inteligence Dilution Marketing 158

Startup Professionals Musings

AUGUST 27, 2010

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Customer support chasm. Product development chasm.

Startup 227

Startup Technical Review Dilution Early Stage 227

Startup Professionals Musings

NOVEMBER 8, 2021

If you are living your passion, you want to interact with customers, and “touch and feel” the product every day. Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. Insist on being engaged at the transaction level.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

ReadWriteStart

JANUARY 13, 2024

By fostering partnerships, developing unique products and services, and continuously refining their business models , these startups can navigate the market challenges and prove their value to potential investors and customers.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

YoungUpstarts

MAY 6, 2019

Here is what you should do: You market and try to acquire initial customers, enough to get you going. Let’s say you have a goal to get at least 1,000 customers in first three months. Next, get better at learning from customers. Find out how your customers are perceiving your product. Further Customer Acquisition.

Startup 101

Startup Technical Cofounder Merger Early Stage 101

View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. Competition matters when it comes to talent, customers, funders, partners, attention, and others. If the company wasn’t that capital efficient, the fund may end up owning 2.5% in a mid stage round at a $100M post.

IRR 136

IRR Dilution Founder Portfolio 136