View from Seed

OCTOBER 24, 2019

The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. No good investor would want the founder/CEO of a company to have insufficient ownership by the series A, and every founder I know is sensitive to taking too much dilution.

Dilution 149

Dilution B2B Early Stage Burn Rate 149

ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

SEPTEMBER 13, 2011

There are other chasms out there just as deadly as the technology one, such as the ones below: Market requirements chasm. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marketing and sales chasm.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

Startup Professionals Musings

JULY 24, 2022

As I’ve said before, everyone talks about innovation, but the majority of new business plans I see still reflect linear thinking – one more social network with more features, another smartphone app for marketing, or one more platform for faster e-commerce. Historic changes and great successes don’t come from linear thinking.

Marketing 313

Marketing Dilution Social Network Government 313

Duct Tape Marketing

OCTOBER 11, 2023

Shattering The Mold: Unleashing the Creator Economy in B2B Marketing written by John Jantsch read more at Duct Tape Marketing The Duct Tape Marketing Podcast with Christie Horsman In this episode of the Duct Tape Marketing Podcast , I interviewed Christie Horsman, who brings a decade of expertise in both B2B and B2C marketing within the SaaS arena.

B2B 79

B2B Marketing B2C Community 79

Startup Professionals Musings

APRIL 27, 2019

There are other chasms out there just as deadly as the technology one, such as the ones below: Market requirements chasm. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marketing and sales chasm.

Technical Review 255

Technical Review Dilution Early Stage Product Development 255

Gust

OCTOBER 18, 2014

What this investor is seeking is called “permanent, full-ratchet, anti-dilution protection”, and that is neither (a) in line with the market, nor (b) practical. That’s why anti-dilution provisions are typically only applicable to the next financing. So, no , you simply can’t give him what he wants.

Dilution 137

Dilution Ratchet Equity Finance 137

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 205

IRR Dilution Founder Portfolio 205

Both Sides of the Table

MAY 28, 2018

Of course the VC is looking to have specificity in how you plan to spend the money you’re going to raise and plans that show a pie chart that says, “25% on marketing, 30% on technology and R&D, 20% on infrastructure, 25% on G&A” do not get funded. Yes, I see plans this pedestrian. You might not like this?—?but

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 156

IRR Dilution Founder Portfolio 156

Startup Professionals Musings

SEPTEMBER 27, 2023

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. This is called stock dilution control. Minimize your own loss of ownership as major investors contribute.

Stock 240

Stock .Net Vesting Founder Vesting 240

The Startup Magazine

JULY 25, 2021

Virgin Galactic shares are worth over $43, giving the spaceflight firm a market value of $11 billion. 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. Understand market share . Maintain relevance through innovation.

Valuation 158

Valuation Artificial Inteligence Dilution Marketing 158

SoCal CTO

SEPTEMBER 27, 2011

In other words, the loss of compensation for the early employee as compared to market rate should be viewed as equivalent to the equity for that same dollar amount from an investor. The key in his approach is that equity compensation should be viewed the same way that you view investment. Manager or Junior Engineer 0.2 – 0.33

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

JANUARY 15, 2021

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. This is called stock dilution control. Minimize your own loss of ownership as major investors contribute.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Startup Professionals Musings

APRIL 23, 2017

There are other chasms out there just as deadly as the technology one, such as the ones below: Market requirements chasm. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marketing and sales chasm.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

The Startup Magazine

MARCH 14, 2022

Advertising and marketing tech. Here the company looks to grow and strives to create a dominant position in the market. The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. Indian startups have excelled in various segments and industries. Education tech. Financial tech.

Technical Review 139

Technical Review Due Diligence India Startup 139

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

AUGUST 31, 2018

Instant global communication now makes it easy to reach new markets without rethinking your entire product strategy. The work required here is a full analysis of the best markets to pursue, based on future growth projections of your customer segment, as well as those to avoid. Expand your product line, staying close to the core.

Angel Investor 167

Angel Investor Dilution Software Review Distribution 167

Both Sides of the Table

FEBRUARY 6, 2013

My rationale is simple: everything goes wrong and only great teams can respond to competitors, markets, funding environments, staff departures, PR disasters and the like. it’s the most expensive dilution you’ll ever face. I am fond of quoting that about 70% of my investment decision of an early-stage company is the team.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

This is going to be BIG.

JANUARY 18, 2024

While they might be generally smart, they’re unsophisticated investors who don’t know what the market is for where you are. They try to sign simple, market-standard deals, keeping the bells and whistles to a minimum while focusing on just a few critical deal points that are most likely to move the needle on their returns.

.Net 88

.Net Cap Table Startup Technical Review 88

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

Mike Michalowicz

APRIL 10, 2022

?. The key to successful marketing comes down to this: your call to action. When your marketing is cluttered with information about what your offering is, and all the ways to get it, it’s human nature to just tune it out. Marketing is every step you take to get the customer to the buying decision. And your sales suffer. .

Marketing 148

Marketing Dilution Sales Email 148

This is going to be BIG.

NOVEMBER 28, 2021

I would propose that early stage startups start thinking about doing something radically different—think about trying to become the absolute best place to work if you have a family as a means of getting an advantage in the hiring market. Consider extended family leave—six months paid at minimum for all parents of all genders.

Hiring 179

Hiring Early Stage Marketing Term Sheet 179

Startup Professionals Musings

NOVEMBER 7, 2022

After many years in business, working in large companies as well as startups, I’m no longer surprised at why mature and successful companies struggle with introducing innovative new ventures as the market and environment changes. The time to start is now, with all the volatility and change in the market, and customers looking for answers.

Advisory Board 359

Advisory Board Incubator Dilution Agile 359

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.

Restful 336

Restful Differentiation Social Media Dilution 336

Startup Professionals Musings

JULY 23, 2021

Evaluate the brand impact of proposed market moves. The push is always on to grow your market with new geographies, new products, and new market segments. Yet every change can cause brand dilution or competition you don’t need. Moving in or out of the wrong market can kill your brand.

Leadership 426

Leadership Management Brazil Differentiation 426

Startup Professionals Musings

NOVEMBER 10, 2012

There are other chasms out there just as deadly as the technology one, such as the ones below: Market requirements chasm. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marketing and sales chasm.

Startup 254

Startup Technical Review Dilution Early Stage 254

The Startup Magazine

FEBRUARY 2, 2021

Discover the key factors shaping market dynamics and opening up growth opportunities in drug development. The race toward a successful COVID-19 vaccine is reshaping the comprehensive approach employed in identifying and advance treatments in the healthcare market. Innovation Turns the Tides in Academic Research.

Technical Review 113

Technical Review Syria Developer United States 113

Startup Professionals Musings

JULY 1, 2022

Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

JANUARY 31, 2020

The simple solution I recommend to inventors is to find a partner who can focus on business and marketing, while you focus on 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

Up and Running

JULY 1, 2020

You may grow to tap new markets or increase sales in your current markets. While it’s called a business plan, it can be written and utilized to successfully enter a new market, launch a product, or weigh the potential of adding an employee. A business plan for a new employee in a new market.

Business Plan 152

Business Plan Forecast Operations Dilution 152

Steve Blank

NOVEMBER 13, 2018

I had joined MIPS Computers, my second semiconductor company , as the VP of marketing and also took on the role of the acting VP of Sales. I worked with engineering to try to find product/market fit ( big endian or little endian ?) I worked with engineering to try to find product/market fit ( big endian or little endian ?)

Part-Time VPE 333

Part-Time VPE Employee Cofounder Hiring 333

Up and Running

JULY 2, 2014

You can’t underestimate the importance of selecting an attorney who “gets” your business model, your market opportunity, and most importantly, your fundraising and exit strategy. of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

NOVEMBER 5, 2022

Outside contracts and freelancing rapidly dilute everyone’s focus on the higher company mission and purpose. Market evolution is not the same as company success. Some people argue that markets evolve quickly and are optimized without managers, so why not let this happen within a business through spontaneous decision making?

Management 333

Management Dilution Forecast Leadership 333

Startup Professionals Musings

FEBRUARY 14, 2021

This raises a big red flag with potential investors, who conclude that no competitors means no market, or you haven’t looked, and the new startup is likely not investable. First to market, for example, is not normally a sustainable advantage for startups. Thought leadership position in your market and customer set.

Intellectual Property 417

Intellectual Property Angel Investor Dilution Differentiation 417

Startup Professionals Musings

NOVEMBER 8, 2021

Until the recession a decade ago, market research indicated that as many as 90 percent of the roughly 20 million American small business owners were motivated more by lifestyle than growth and money. More recently, the desire for extra income has become the key driver in new startups, according to the popular press.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

Startup Professionals Musings

DECEMBER 11, 2022

Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest. Marketing programs and distribution channels are required for even the best solutions, with an appropriate and viable rollout and growth strategy. Dysfunctional or non-functional team members.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271