Startup Lessons Learned

JUNE 15, 2009

Of all the tactics I have advocated as part of the lean startup , none has provoked as many extreme reactions as continuous deployment , a process that allows companies to release software in minutes instead of days, weeks, or months. The Lean Startup Intensive is tomorrow at Web 2.0. Expo SF (May. for Harvard Business Revie.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

Both Sides of the Table

SEPTEMBER 28, 2014

” Stay lean and only raise a big round if you DO find product / market fit and which point you want to loosen the belt quickly and raise the capital to do so. In these kinds of businesses I’m on the record as advising “ Ring the Freakin Cash Register.”

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Lessons Learned

OCTOBER 26, 2009

Every time you listen to customers, you fear diluting your vision. Every time you listen to customers, you fear diluting your vision. The Lean Startup Intensive is tomorrow at Web 2.0. Amazing lean startup resources Is Entrepreneurship a Management Science? That’s natural. That’s natural. Expo SF (May.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

Both Sides of the Table

FEBRUARY 17, 2011

Are you in the “lean&# phase? I’m a very big believer in the “Lean Startup&# principles as espoused by Steve Blank and Eric Ries. If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business. 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Startup Lessons Learned

AUGUST 24, 2009

And as everyone’s attention starts to focus on those same indicators, their value is being diluted. Just like in the world of startups, we can start to use micro-scale pilot programs, executed in lean fashion, to gather real facts for making ROI decisions about new project investment. 12comments: Dougvs said.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Up and Running

JULY 14, 2015

Operating lean should be the mantra of all businesses. Before any fundraising, it is important to set out what your parameters are for things like valuation (hence dilution), and terms that you would deem okay, versus those that you would consider as being too much from an investor. Should you ever raise more than you need?

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Mike Michalowicz

JANUARY 16, 2023

But, your messaging will be diluted if you are trying to speak to many needs. Otherwise, you’re leaning toward another genre of book entirely. Speak to one person in the audience. This is the person who can best be served by your message. Too often we want to speak to the masses, which is a noble intent. A short story is fine.

Small Business 60

Small Business Audience Revenue Dilution 60

Austin Startup

MAY 8, 2018

The further you move away from the founder team, the greater the dilution of a person’s commitment to the “mission” of the startup; and that means more cash to keep them committed. In the very early days, employees are often paid more than founders / senior executives. Employment laws and taxes are not a place to move fast and break things.

Employee 48

Employee Seed Stage Startup Equity 48

ReadWriteStart

JUNE 1, 2020

Bootstrapping inculcates the entrepreneurial discipline and financial responsibility to run a lean business. ? Raising higher capital at an early stage means more equity to be diluted to the investors. Bootstrapping is when you put your own money or borrow from friends and family to set up your business. Crowdfunding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

SEPTEMBER 10, 2021

A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). So in a way it’s self selecting. These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Up and Running

SEPTEMBER 6, 2018

You can actually put together a Lean Plan in less than 30 minutes. Here’s a free downloadable Lean Plan Template to help. As we said earlier, the simplest Lean Plan is just bullet point lists and tables, a few pages, plus essential projections. Diluted priorities. Cash flow casualness. Fear and dread.

Business Plan 128

Business Plan Hockey Stick Lean Dilution 128

The Startup Toolkit

NOVEMBER 4, 2011

Roughly 33% dilution for full round ($2mm pre-money). 40% dilution for full round (roughly $2mm pre-money). What’s the dilution? At this point I’m leaning toward the first deal, but not by a huge amount since there’s some risk to completing the round in both cases. 1.25mm total. Conveniently local.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

JANUARY 9, 2014

By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product. Equally there are others that launch a poor early version of their product in true lean startup style. People who focus exclusively on efforts that matter, succeed.

Early Stage 102

Early Stage Startup Cofounder Design 102

Startup Professionals Musings

JUNE 24, 2016

Here is my list, based on my own experience as a startup advisor, talking to other angel investors, and derived from the lean startup principles of venture advisor and entrepreneur Eric Ries : Strip the solution down to a focus on a key feature. This confuses customers, and dilutes your marketing impact.

Angel Investor 143

Angel Investor Dilution Matching Business Model 143

Up and Running

APRIL 23, 2013

Don’t Dilute Your Brand. Case in point: did you know that without even being aware of it, you can unintentionally weaken and dilute your brand? Of course, Virgin is still around and kicking; they are simply too large to be ruined by this sort of brand dilution. Were they about space travel or music or what?

Dilution 87

Dilution Lean Small Business Sales 87

Austin Startup

OCTOBER 4, 2017

Dilution, overvaluation, free money, TNSTAAFL, and how to deal with VCs like a pro. First time founders are typically the most likely to object to dilution when fundraising. They do this to avoid dilution, which on the surface seems like a good idea, but can prove deadly to your start up when you get to the A round.

Dilution 59

Dilution Valuation Equity Balance Sheet 59

The Next Web

SEPTEMBER 13, 2013

Thus, one can say the concept of a “ lean startup ” existed in Asia far longer than in the Valley – it’s just that no one ever wrote a book about it. Finding the right partner is a much bigger win than the extra cash or minimizing dilution. Finally, don’t over-optimize on valuation.

Asia 132

Asia Silicon Valley India Term Sheet 132

A Smart Bear: Startups and Marketing for Geeks

JUNE 12, 2012

” Food on the Table — a now-famous lean juggernaut in Austin run by IMVU alum Manuel Rosso — talked to 120. I should have asked for the $50 on the spot, or at least had them sign something committing to it; then I would have focussed my remaining efforts on making those 20 people happy instead of diluting it with all 40.

Customer 252

Customer Customer Development Dilution Engineer 252

Up and Running

APRIL 23, 2013

Don’t Dilute Your Brand. Case in point: did you know that without even being aware of it, you can unintentionally weaken and dilute your brand? Of course, Virgin is still around and kicking; they are simply too large to be ruined by this sort of brand dilution. Were they about space travel or music or what?

Dilution 68

Dilution Lean Small Business Sales 68

The Startup Toolkit

NOVEMBER 4, 2011

Roughly 33% dilution for full round ($2mm pre-money). 40% dilution for full round (roughly $2mm pre-money). What’s the dilution? At this point I’m leaning toward the first deal, but not by a huge amount since there’s some risk to completing the round in both cases. 1.25mm total. Conveniently local.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Both Sides of the Table

APRIL 27, 2014

You have to decide where to lean in on follow-on rounds. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. And when the press releases and the attaboys wear off it still comes down to real work. Know how you’ll make money.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

Austin Startup

JANUARY 11, 2020

It’s now the #1 non-dilutive source of capital for businesses to continue to grow and scale, but it’s highly overlooked. We’re able to get a lot of things done and I can lean on them, but I’m really excited about hiring more people so we can divide and conquer. Billions are left on the table by companies every year.

CPA 62

CPA Startup Non-Compete Cofounder 62

keen.io

FEBRUARY 5, 2013

If the company is pre-funding or only has a small friends-and-family seed round, then the numbers should go up from there, based on expected dilution and greater risk.” Assumption: The pre-dilution amount prior to Series A should be approximately double the amount in this post-Series-A chart. Result: A fair offer would be between.8

Salary 50

Salary Equity Startup San Francisco 50

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Sometimes the consultant has a reasonable basis to think this, since lean startups are programmed to get things for free and may call on the consultant from time to time for free advice.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Austin Startup

SEPTEMBER 10, 2017

SAFEs and Notes are optimized for speed and simplicity, with a cost of future uncertainty and dilution. Don’t bother actually talking to counsel on these “standard” things; you’ve got to stay lean and focus on “more important” stuff. They have their downsides, which are discussed in some of the above links. Sounds legit.

Valuation 48

Valuation Dilution Silicon Valley Seed Stage 48

Rob Go

MAY 2, 2016

Even though you aren’t raising an A, the message this sends the market is that things are working, and so you are going from a very lean pre-PMF stage to a more aggressive early growth stage. Dilution is the big question here. Raising a seed round half as big usually does not yield half the dilution at this early stage.

Seed Stage 28

Seed Stage Dilution Valuation Seed Capital 28

Austin Startup

MARCH 16, 2017

Stoplight is philosophically based on distilling what is inherently complicated into a beautiful and use-to-use visual solution without diluting the overall effectiveness. Stoplight is lean, visionary and opportunistic and therefore I am proud to support the team. Therefore, Stoplight will be in market to fill the gaps.

API 59

API Mobile Artificial Inteligence Austin 59

View from Seed

JANUARY 28, 2016

This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution. It creates focus and discipline and instills pressure to remain lean and not expand the team too quickly. This staged approach is often much better for the founders as well.

Cofounder 120

Cofounder Finance Founder Syndicate 120

Both Sides of the Table

MARCH 11, 2011

Too many entrepreneurs focus on dilution. But over-optimizing for dilution is a bad attribute relative to focusing on creating a big & winning company. When he tells his stories from the 1990′s your realize that he was probably the original “lean startup.&# Think YouTube vs. the rest.

Product 350

Product Tuvalu Dilution Incubator 350

The Next Web

OCTOBER 10, 2013

Too dilutive.”. Shoulder – not to cry on, but to lean on. Dilution – bringing on a co-founder likely means you’re splitting your share in half. You can’t be successful unless you are the single visionary, or unless you have a cofounder, or unless there are three of you. You know what is definitely the wrong number of cofounders?

Cofounder 143

Cofounder Technical Cofounder Kenya Dilution 143

YoungUpstarts

NOVEMBER 30, 2020

The ground rule is to always dilute risk by diversifying your portfolio. However, to make the best of it in 2021, make sure to always strategize and lean on trusted partners along the way. Some say that you shouldn’t wait to buy real estate, but you should buy real estate and wait.

Portfolio 278

Portfolio Colombia San Francisco Dilution 278

Seeing Both Sides

JANUARY 4, 2012

At the onset of 2012, many start-up executives around the world are sticking their copy of Lean Start-Up on the shelf, leaning back, and bemoaning the fact that they have a new set of challenges ahead of them. Obviously, it's not that easy a decision.

Lean 53

Lean Dilution Revenue Hiring 53

Small Business Force

AUGUST 11, 2009

With each dilution, should come more value. It can help you conserve cash by keeping early salaries below market and really help you with employees during "lean times." The name of the game is how much the equity is worth, not how much you have. If possible, make all employees eligible to be "owners" through the option plan.

Vesting 32

Vesting Equity Valuation Dilution 32

Duct Tape Marketing

MAY 7, 2015

It’s a “lean” approach to marketing mashed up with leveraging your zone of genius. The reality is that few of us can do all of these things well, and we’re diluting our results when we’re spread too thin across strategies. Here are a few ways to help you cut the marketing that’s not working and find your business sweet spot: #1.

Marketing 28

Marketing Dilution Small Business PR 28

blog.simeonov.com

FEBRUARY 22, 2010

In this case you have to consider whether they are common or preferred holders and, in the latter case, their anti-dilution protection, pay-to-play provisions and willingness to participate in the recap financing. of the fully-diluted capitalization of the company. Board member. The next post will go into this in more detail.

Founder 44

Founder Vesting Agile Startup 44

YoungUpstarts

JANUARY 20, 2020

Innovators can lean on both traditional and unexpected methods to secure seed funding ethically and legally. It’s an attractive transactional relationship, though it can severely dilute ownership. Though this seems to paint a bleak picture for young entrepreneurs who lack the five C’s, it doesn’t have to paint them into a corner.

Indiana 165

Indiana Startup Bootstrapping Finance 165

David Teten

OCTOBER 1, 2015

At the same time, a direct equity investment (one where the dev shop acquires a share in the company immediately) puts the founders in a potentially uneasy position of having to dilute their company before a product is built. The process usually goes as follows: Founder approaches us with an idea.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60