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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

It says that selling an airplane ticket for $500 and getting paid a $5 fees by the airlines (1% gross margin) is not the same thing as selling $500 of software that you built (>90% gross margin). Most of this advice boils down to an argument in favor of basic planning before starting a company or raising money.

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How to find funding for your hardware startup while we’re waiting for the hardware revolution

Version One Ventures

Hardware requires time, money, and inventory. As a result, most venture capitalists are reluctant to touch hardware projects, opting for the lower costs and smaller risks of software. Many VCs have a background in software and are less familiar and comfortable with bringing hardware projects to market. Patents versus traction.

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6 Tips for Coming Up With Your Million-Dollar Business Idea

Up and Running

In the early 1990s, my brother was working for a company that was going through the roof selling shareware software via catalog. David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank. I stole the ideas for my first startups from other people. We thought, “Hey, we can do that!”

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). Many software companies have 85-90% gross margins, which is why it has historically been a very attractive industry. They both raised angel / seed money of $1.5 Not necessarily.

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The Top 3 Financial Perks of Launching a Startup Company During College

The Startup Magazine

You should never ignore the opportunity for money off of the things you need to get set up. In return, you may be able to get your hands on some seed money for your college startup. Computers and software . These deals are not just on clothes and food, however. You can get discounts on: Apple products. Electronics.

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Issues in software IP are nuanced and require a fairly high level of expertise to determine if the technology is patentable at all. In semiconductors and other areas where hard IP really matters, investors highly value patents.

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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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