Both Sides of the Table

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

Most of this advice boils down to an argument in favor of basic planning before starting a company or raising money. In many ways the fact that it has become so cheap to start a company and relatively cheap to raise angel/seed money that we as an industry have gotten lazy on basic planning. Incumbent Strengths & Weaknesses.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. Servers, databases, bandwidth – they’re all virtual now. You have kids, a mortgage, MBA debt? Not my problem.

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Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

They both raised angel / seed money of $1.5 Let’s consider the following two software companies, both of which have 66% gross margins. Both companies look the exact same after one year. million to fund operations in their first year of operations. Both companies lost $1 million in their first year.

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The Corrosive Downside of Acquihires

Both Sides of the Table

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. It says if you want to make “real” money - quit. Get some famous angel or seed money.

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How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

I was out to raise my first seed money in my second startup of $500,000. It is, of course, a very recent phenomenon. Let me take you back just 10 years ago to 2005 in Silicon Valley where I returned after 11 years of living in Europe. I began asking around who the likely investors were for such a market.

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Should Startups Care About Profitability?

Both Sides of the Table

They both raised angel / seed money of $1.5 Let’s consider the following two competing software companies, both of which have 66% gross margins and they decide to run their company exactly the same in year one. million to fund operations in their first year of operations.