How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

We also know that even though many of us who are experienced in startup successes & failures look at businesses and say, “That will never work” (as many people said about Uber) or “You can’t make any money in that business” (as many said about WhatsApp or Dropbox) and of course some entrepreneurs pull off extraordinary things we never thought possible. Many startup businesses – tech or otherwise – fail.

Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. They both raised angel / seed money of $1.5

Trending Sources

The Corrosive Downside of Acquihires

Both Sides of the Table

The Aqui-hire Business. Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If

So Just How Do You Start A Startup?

YoungUpstarts

They originally set out to make money selling programming languages. Hiring Staff. Hiring staff is a crucial stage in any startup’s success. Hiring staff for a startup is different from hiring staff for an existing big business. Only Money Can Make It Happen.

Why You’re Not Getting the Most out of Your Board

Both Sides of the Table

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful.

Build Entrepreneur Credentials Early and Wisely

Startup Professionals Musings

Too many startups fail simply by missing the practical elements of money management, time management, and setting priorities. Most schools have business plan competitions, and even give out seed money to winners. Many believe that entrepreneurs are born, not made.

Uber Cofounder Garrett Camp Raises $50 Million From Dream Team of Investors

Inc Startups

Expa Capital--what the $50 million was raised for--is Expa''s investment arm, which will initially invest between $500,000 and $1 million in seed capital in each company, focusing on mobile applications, platforms, and marketplaces.

Snaptrip case study – Solo founder hypothesis in action

The Equity Kicker

With no team and no technical expertise Matt was planning to find a team and build out some product before starting to raise some seed money. Most of our early seed companies have used the Concierge MVP to accelerate insight which have led to better business and product decisions.

Why the New Seed Might Be a Bad Seed

This is going to be BIG.

About a year ago, I started hearing about the existence of a "pre-seed" round. The term "seed" implies the very beginning to me. If you can''t go to "seed" investors for your very first investment because you''re too early, that just seems weird to me.

Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them.

Build Entrepreneur Credentials Early and Wisely

Gust

Too many startups fail simply by missing the practical elements of money management, time management, and setting priorities. Most schools have business plan competitions, and even give out seed money to winners. Mark Zuckerberg at Harvard via ShinyShiny.tv.

Most Great Entrepreneurs Don’t Drop Out of Harvard

Startup Professionals Musings

Too many startups fail simply by missing the practical elements of money management, time management, and setting priorities. Most schools have business plan competitions, and even give out seed money to winners. Many believe that entrepreneurs are born, not made.

Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

The result is a rapidly-growing local tech economy: tech hiring is among the highest in the nation at 1.7 Stuart Wall, CEO of Signpost , a local advertising platform funded by Spark Capital and Google Ventures.

5 Ways Small Businesses Can Win Large Customers

Inc Startups

When my business partner Ed Moed and I opened our shop from his squalid, one-bedroom apartment in 1995, we had a measly $12,500 in seed money and my Rolodex of leads. The fourth person I hired after hanging out the Peppercomm shingle was a British receptionist/administrative assistant.

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. I’ve seen many start-ups rush to hire new staff and tackle brand new verticals or international markets when it’s just not time yet. If you do take on too much money early on, congratulations on the success- but be aware of the potential consequences and manage them proactively.

What’s the problem with too much funding?

Version One Ventures

With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. I’ve seen many start-ups rush to hire new staff and tackle brand new verticals or international markets when it’s just not time yet. If you do take on too much money early on, congratulations on the success- but be aware of the potential consequences and manage them proactively.

From “Good Idea” to Funded Tech Startup: Building Hallspot

Up and Running

He is also the founder of Hallspot , a new social networking site exclusively for college students that has raised hundreds of thousands in seed money and will launch on September 27 at Thorne’s alma mater, where more than 6,000 students have pre-registered for the service.

Get Off My Lawn! Crazy Kids and Their Sex, Drugs and Startup Advice!

This is going to be BIG.

A founder will raise one party round worth of seed money and they''ll go teach a class on how to raise venture capital. A BD person at an aqui-hire will write a book on the art of the deal. It''s fine when you advise people on how to get hired at a small startup, because you did exactly that, and probably talked to others in the same position. in funding, and expand from 3 employees to 13—three of which I’d recruited and hired.

Coder 27

Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Your Money. Top Startup Advisor Paul Graham Just Warned Against Taking Googles Money. Grahams startups go through a months-long process of coaching to help them build products and raise money. The pattern is: youve already raised some money at a cap of $x. Your Money.

How H&R Block Turned a $5,000 Loan Into a 24 Million-Customer Business

Inc Startups

The reason I didn''t give up was because I didn''t think anyone would hire me," he said half-jokingly. "I Having little seed money can be an advantage. We weren''t trying to make the most amount of money.

Ungerminated: Trouble with Seeds

Passionate Intensity

Quantity, quality, and size of early-stage seed financing has recently given rise to speculation about a seed funding bubble. Money is available, some will say, easy to get. But these thoughts have been aired before and are now part of the usual rhetoric about the seed bubble.

Warby Parker of Shoes? Meet Beckett Simonon

Inc Startups

Using just $2,000 in seed money generated from Hasso, the company produced its first batch of inventory--1,000 pairs of shoes. And to keep overhead low, the founders kept the team small: They hired a Web developer, an accountant, and one intern.

Why the Series A Crunch Might Be a Good Thing

Inc Startups

In 2012, Rust and co-founder Garrett Johnson raised $2 million in seed funding in two weeks. Share of seed-funded companies that won''t be able to get follow-on funding: 61%Source: CB Insights That''s the story, anyway, and it has the start-up community vibrating with angst and debate.

How to Start a Startup

www.paulgraham.com

You need three things to create a successful startup: to start withgood people, to make something customers actually want, and to spendas little money as possible. The way a startup makes money is to offer people bettertechnology than they have now. Andyet theres a lot of money at stake. Microsofts originalplan was to make money selling programming languages, of all things.Their current business model didnt occur to them until IBM droppedit in their lap five years later.

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

pandodaily.com

We know this: As many as a thousand companies who’ve received seed rounds won’t be around in a year — maybe six months. There simply won’t be soft-landings and acqui-hires for all of them. Meanwhile, there’s been a surge in follow-on seed deals.

Life As A Startup Consultant

Seed Stage Capital

It''s an understatement when I say there are a LOT of wacky people who are starting companies (one old joke is that you call yourself an "entrepreneur" when you can''t get anyone to hire you and give you a proper job title :). If you want to work with startups, the money has to be secondary.

A Love Story: Start-ups & Ultimate Frisbee

Inc Startups

Later, Jurvetson signed the papers to invest nearly $900,000 in seed money for the start-up. If someone cheats or constantly criticizes, they may not be someone you want to hire," he told the magazine.

3 Reasons to Look to the Angels for Start-up Funding

Inc Startups

But at the initial seed financing stage of your start-up, VCs are not always the better option In fact, angel investors often have more to offer. They can help you build your board, hire great executives and strategize on your business model. VCs can pack a powerful punch.

5 Reasons to Avoid Silicon Valley

Inc Startups

Too much seed money. You must be scratching your head now and asking yourself: How can too much money be bad? That sounds great but it also means that those “lucky” seed money recipients will be on their own from the moment they cash the check.

SkySQL Raises €3 Million Series A Round

ArcticStartup

SkySQL will use the funding for hiring and new project development. The company was founded October 2010 and has been funded to date with seed money from OnCorps, as well as Open Ocean Capital. ”We SkySQL a Finnish provider of affordable MySQL & MariaDB database solutions, has announced that it has raised $4 million (€3 million) in Series A investments. The funding round was led by Finnish Industry Investments Ltd. (a

How to Fund a Startup

www.paulgraham.com

A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. The advantage of raising money from friends and family is thattheyre easy to find. But as well as money, theres power.

D-Wave's Dream Machine

Inc Startups

Farris had thrown Rose a few thousand dollars in seed money, and they raised half a million (Canadian) from local angels. All of that seeded what is now the biggest IP portfolio in the world in quantum computing. Then D-Wave ran out of money.

Understanding the Risks of VC Signaling

Both Sides of the Table

I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. invested in the seed round they have more inside knowledge than I do. Why are VC’s really doing seed deals? Seeds deals.

Why You're Not Getting the Most Out of Your Board

Inc Startups

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful.

Land of the Freaked-Out

Inc Startups

Investors put less money into new ventures. Or government policies that discourage hiring through higher taxation or increased regulation? A Wall Street Journal article traces America''s economic woes to a sudden loss of entrepreneurial nerve. Great thesis. No evidence.

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed

Venture Hacks

The topic was VC signaling in seed rounds — and how these signals help or hurt your ability to raise money in the next round. SlideShare: VC signaling in seed rounds. Chris Dixon: The problem with taking seed money from big VCs. VC signaling in seed rounds.

A Compilation of the Web's Best Advice for Entrepreneurs

Platforms and Networks

Rose is CEO of AngelSoft, a platform that provides web-based planning tools for angel investors and entrepreneurs (NEW 11/29) Marc Andreessen on how much money to raise -- and how much is too much (NEW 11/29) Atlas VC Fred Destin on what not to disclose to a VC when raising money (NEW 11/30) Equity simulator from OwnYourVenture that calculates impact on % ownership by round of $ raised, size of option pool, etc.

Choose Your VC Investor Carefully

Both Sides of the Table

Too much money flowed into VC in the past 10 years and it brought in too many people who became VCs for the wrong reason. And many of these people are money managers rather than people like Gus who inspire entrepreneurs.

The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. by John Vrionis, partner at Lightspeed Venture Partners.

The Future of Web Startups

www.paulgraham.com

Plus in a startup you could make much more money. We could hire employees, but we want to be forced to figure out how to scale investing. This is a problem for founders, because it makes raising money take longer and cost more in legal fees. As the volume of startups increases, big companies will start to develop standardized procedures that make acquisitions little more work than hiring someone. Seed funding isnt regional, just as big research universities arent.

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