Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? There was no money train.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

ReadWriteStart

DECEMBER 15, 2022

Startup studios continue to grow in popularity as incubators for new businesses. Rather than simply launching one startup, the startup studio model creates an organization whose business is launching startups. These can then be repeated and improved on with each successive startup.

Incubator 188

Incubator Startup Software Developers Software Development 188

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Supportive co-founder and executive positions. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

SoCal CTO

NOVEMBER 1, 2010

I had a recent email dialog with the founder of a company looking for a CTO for their startup. And I tried to evaluate the idea and figure out: What did the founder really need here? Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both?

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

Startup Professionals Musings

JANUARY 18, 2020

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Supportive co-founder and executive positions. Member of the Advisory Board.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Technical Review 60

SoCal CTO

APRIL 18, 2012

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). Or they are looking at Hiring a CTO and want to see what salary and equity ranges look like.

CTO Hire 294

CTO Hire Salary Equity Los Angeles 294

SoCal CTO

FEBRUARY 22, 2011

Todd Gitlin of Safire Partners was nice enough to compile some data on CTO Equity and Compensation at Venture Backed Companies for the LA CTO Forum and present last year. Todd is a go to resource for people looking for talent in startups. It is interesting to see the salaries of CTOs of pre-Revenue even pre-Launch companies.

CTO Hire 273

CTO Hire Equity Southern California France 273

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 310

Burn Rate Hockey Stick Salary Social Media 310

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Bootstrapping.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

JANUARY 4, 2014

Yesterday I wrote a post about “ the politics of startups ” in which I asserted that all companies have politics, which in its purest sense is just about understanding human psychology. ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes. Equity for the future?

Founder 340

Founder Cofounder Sacramento Technical Review 340

The Startup Magazine

AUGUST 11, 2023

These investments are a tremendous help to your startup because they will serve as a stepping stone to reach your target eventually. Some return value must be offered to the investors for startup seed funding to be considered acceptable. When considered, “seed funding” describes the initial sums of funds a startup raises.

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

FEBRUARY 21, 2012

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. Which would you bet on?

Burn Rate 232

Burn Rate Startup Salary Equity 232

Both Sides of the Table

SEPTEMBER 28, 2014

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit.

Cofounder 78

Cofounder Technical Review Dividend Equity 78

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. Among the sites we have found most helpful with practical guides for founders: Biztree , First Search , Foundersuite , Goodwin Founders Workbench , Guides.co , Inc.com , and StartupRocket. .

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

This is going to be BIG.

JANUARY 18, 2024

These are people that didn’t make their money through a tech startup or startup investing. Some of these folks are founders and CEOs, but not at high-growth tech startups. On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation.

.Net 88

.Net Cap Table Startup Technical Review 88

Startup Professionals Musings

JANUARY 28, 2011

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. Pay people with equity or future revenue.

Burn Rate 231

Burn Rate Startup Salary Equity 231

ReadWriteStart

AUGUST 28, 2012

In today’s startup landscape, practically everything can be outsourced. But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. So how do you decide what’s right for your new company? How Innovative Is Your Technology?

Technical Review 131

Technical Review Cofounder Founder Software Review 131

NZ Entrepreneur

SEPTEMBER 29, 2021

It is our startup sector which will drive this innovative progress. Startup founders are our ambitious problem solvers. Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. In order to understand startup governance, you need to understand risk and reward.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

YoungUpstarts

JANUARY 10, 2020

by Zain Jaffer, serial entrepreneur and the Founder and CEO of Zain Ventures. When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. Running a small business can come with a slew of challenges. Among the list: the loss of a major client. Work to win them back.

Customer 334

Customer Development Team Review Advisory Board Private Equity 334

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. When you accept outside money, particularly a private equity (PE) investment, however, that changes. Rule 1: Bootstrap until you have a viable product.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

This is going to be BIG.

AUGUST 21, 2014

No one wants to be *that* founder--the non-technical founder poking around developer meetups asking for a unicorn with a Github account. Maybe they''re locked up in golden handcuffs post-acquisition of their startup. What you can offer is interestingness, a thoughtful challenge, and a little bit of equity.

Founder 120

Founder Software Developers Software Development Venture Capital 120

Steve Blank

MARCH 16, 2016

There are many reasons to found a startup. There are many reasons to work at a startup. To most founders a startup is not a job, but a calling. But startups require money upfront for product development and later to scale. Traditional lenders (banks) think that startups are too risky for a traditional bank loan.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Steve Blank

MARCH 12, 2014

We realized that past K-12 Entrepreneurial classes taught students “the lemonade stand” version of how to start a company: 1) come up with an idea, 2) execute the idea, 3) do the accounting (revenue, costs, etc.). Our students first worked with two local startups who agreed to be their clients, on real-problems.

Lean 334

Lean Customer Development Startup Silicon Valley 334

Startup Professionals Musings

APRIL 10, 2016

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Burn Rate 120

Burn Rate Sweat Equity Technical Review Intellectual Property 120

ReadWriteStart

AUGUST 28, 2012

In today’s startup landscape, practically everything can be outsourced. But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. So how do you decide what’s right for your new company? How Innovative Is Your Technology?

Technical Review 79

Technical Review Cofounder Founder Software Review 79

Startup Professionals Musings

MARCH 16, 2011

Money to build the business is the number one challenge for most startups. A large percentage of startups never apply to either. You need to explore more common and more productive approaches for getting your startup moving forward. Self-funding is the preferred source of cash for your startup – if you can do it.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Both Sides of the Table

SEPTEMBER 17, 2011

I recently wrote a post about why I didn’t think early-stage startups should have COOs. What a luxury in a startup to have the number one person in the business get to focus on just strategy? “We’re all equal co-founders and we don’t care about titles.&# Dilute your cash, equity or both.

Operations 292

Operations CTO Hire Startup Early Stage 292

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. Pitchbot.vc

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60