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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

It turns out that to build a successful company you ultimately need this strange thing called “revenue” that people don’t just hand you: You need to earn it. And there’s this other thing called “gross margin,” which shows the quality of your revenue. How much ad revenue does TripAdvisor make?

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Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

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Startup Business Investments Around The World

YoungUpstarts

Unfortunately, a number of them had an early exit from the business scene due to ineffective business plans and/or unsustained revenue for their investment. Initially, you get funded by entrepreneur founders who want to develop a product, service, or solution which they think the market needs and demands.

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How to Fund a Startup

www.paulgraham.com

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. It wasnt because they werent accredited investors that I didntask my parents for seed money, though.

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From Nothing To Something. How To Get There.

techcrunch.com

For both companies, the initial traction enabled raising seed money to get them to a traditional VC investment.) I know one company demanding something like 15K just to use his product in my portal. Hopefully your idea of business model isn’t “ad revenue based”. I can’t code, and that’s a major disadvantage.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. iOS App Store revenue still dwarfs Google Play’s, but the challenger is catching up fast. Entrepreneurs are survivors by nature.