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Is the Lean Startup Dead?

Steve Blank

When Netscape went public, it unleashed a frenzy from the public markets for anything related to the internet and signaled to venture investors that there were massive returns to be made investing in anything internet related. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money.

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Investors Think They’re More Impactful Than They Actually Are

VC Adventure

Companies looking to raise money turn to venture capital for a variety of reasons. Top among them is generally access to capital, but often on the list is the hope that raising capital from experienced (and well-networked) investors will have other positive impacts on their business.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

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. The most visible evidence of the trend towards automation is an increasing number of engineers working at venture capital and private equity funds.

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Venture Capital Is Just One Funding Option, Reminds OnPay’s Mark McKee

ReadWriteStart

Although some founders take venture capital in exchange for equity, that’s not the only way to do it. To learn more about the pros and cons of venture capital — and founders’ funding alternatives — I caught up with Mark McKee. Anderson: So is venture capital the right approach for most startups?

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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. It quickly became impossible to raise venture capital. It isn’t even a story about raising venture capital or M&A. We ended up agreeing a term sheet for $16.5 Yes, this was stupid. Any deal.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

But often this doesn’t tell the whole story because often companies are also spending money on PR and other marketing activities in order to support the sales process. Generally you should take your full marketing spend including PR divided by your customers acquired to get your “fully loaded CAC.” That is what finances rapid growth.

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