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Cybersecurity startups face market challenges

ReadWriteStart

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.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

For the common shareholders (employees, advisors, and previous investors), a cram down is a big middle finger, as it comes with reverse split – meaning your common shares are now worth 1/10th, 1/100th or even 1/1000th of their previous value. (A A cram down is different than a down round.

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Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

You are particularly vulnerable if: You have revenue concentration (few customers each providing a large total of percentage of your revenue). You have a large number of startup customers (because when markets crash they have a funny way of going bankrupt quickly or cutting burn precipitously).

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming.

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Twitter Link Roundup #178 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Building Loyalty The Lady Gaga Way: Focus On 1% Of Your Customers | Forbes – [link]. Building Loyalty The Lady Gaga Way: Focus On 1% Of Your Customers | Forbes – [link]. How to Calculate Customer Experience | Evergage – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link].

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

New investors hate down rounds. customers who paid for services often get burned. They will enter the “triage phase&# of the market where they figure out which of their existing deals will survive. Many good companies will not get funded. Vultures will start circling looking for deals. Get funded now, if you can.&#.