Startup Professionals Musings

FEBRUARY 5, 2020

As a mentor to entrepreneurs, I tend to see many of the same obstacles appearing in every new startup, and since I don’t want to appear to be a downer , I’m not sure how to properly warn people ahead of time to be on the alert for these challenges. Too many entrepreneurs think that expert external advisors are suspect, or will slow them down.

Startup 131

Startup Entrepreneur Examples Customer 131

socalTECH

DECEMBER 18, 2015

Los Angeles-based ZendyHealth (www.zendyhealth.com) thinks it has figured out a way to help both patients and doctors by helping connect patients to doctors and specific procedures, with upfront pricing. It's an on-demand, name your own price service. Why did you decide, as a physician, to become an entrepreneur instead?

Pricing 100

Pricing Startup Demand Platform 100

Both Sides of the Table

APRIL 21, 2013

Tran moved to Los Angeles and started his business in Chinatown with a need he personally had. How much could the new generation of entrepreneurs learn from that? He wanted to keep his prices low (apparently he has never raised his wholesale price in 30 years). He noticed that Americans didn’t have good hot sauce.

Entrepreneur 415

Entrepreneur Startup Pricing Product 415

Both Sides of the Table

AUGUST 14, 2009

I recently wrote a post on angel financing covering the topic of convertible notes but I realized I was thinking about the issue more from investor perspective and a very narrow topic of how to price the round. This post is for those who want to raise angel money. At an angel round you can get away with no market validation.

Angel 291

Angel Funding Venture Capital Startup 291

Both Sides of the Table

NOVEMBER 14, 2010

I pointed to several Economist articles I had read that mapped historical prices of real estate for 400 years and how on average property values grow at no more 1.5% above inflation yet in many markets in the US & Europe prices were rising at 10-25% per year. Logic tells me the following: It is hard to make money angel investing.

Invest 299

Invest Angel Technical Review Venture Capital 299

InfoChachkie

MARCH 18, 2013

In order to extract value beyond your Angel investors' cash, you must first assess three important parameters: (i) the relative strength of their personal brand, (ii) their ability to add operational value, and (iii) the amount of care and feeding they will demand from you. Four Common Angel Archetypes.

Angel 217

Angel Technical Review RSS Entrepreneur 217

Both Sides of the Table

NOVEMBER 19, 2009

(In case it’s not obvious it’s a play on the Nike slogan, “Just Do It.&# ) I believe that being successful as an entrepreneur requires you to get lots of things done. Entrepreneurs make fast decisions and move forward knowing that at best 70% of their decisions are going to be right. This paralyzes most people.

Entrepreneur 414

Entrepreneur Technical Review Slides CTO Coach 414

Startup Professionals Musings

OCTOBER 16, 2023

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Forecast sales-volume expectations.

Startup 116

Startup Pricing Sales Statistics 116

Both Sides of the Table

SEPTEMBER 18, 2014

Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. Convertible notes have both features in them but for some reason entrepreneurs don’t understand it. It’s like we need a finance 101 course for entrepreneurs. We raised a seed round.

Venture Capital 417

Venture Capital Capital Pricing Doc 417

Both Sides of the Table

SEPTEMBER 15, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). I should say that I agree that naive optimism in entrepreneurs can produce higher beta (upside or flops) and that’s good from an investment standpoint if you’re looking for big returns.

Invest 284

Invest Angel Venture Capital Startup 284

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Here’s the “what.”. And here’s the “why.”.

Outsource Development 156

Outsource Development Startup Outsource Venture Capital 156

Both Sides of the Table

OCTOBER 8, 2014

” It’s the most common refrain I hear from investors and even entrepreneurs these days. Let me start with the obvious baseline that most people probably know instinctively: Los Angeles is the 3rd largest technology startup ecosystem in the US. And it wasn’t just Google Ad Words that originated in Los Angeles.

Entrepreneur 376

Entrepreneur Snapchat Startup Google 376

Startup Professionals Musings

FEBRUARY 21, 2015

Even if you ignore all the hype around crowdfunding, there can be no doubt that it is a real alternative for entrepreneurs to achieve visibility and funding today. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. angels crowdfunding entrepreneur investor'

Venture Capital 108

Venture Capital Angel Satisfaction Equity 108

Both Sides of the Table

SEPTEMBER 14, 2010

This is the second article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). And we all know that Ron Conway is considered the savviest of angel investors and yet by definition not all of his investments succeed. Part 1 – Access to Great Deal Flow – is here.

Invest 288

Invest Angel Web 2.0 SEO 288

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. No-one complains if the sales price is ten times the investment, since there is plenty to go around. It is in these marginal sales that the formula distorts returns so badly in favor of the investors.

Angel 120

Angel Sales Pricing Equity 120

Berkonomics

NOVEMBER 1, 2018

Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. The marginal exit is most difficult, and it would be rare for an entrepreneur to willingly share with other managers.

Sales 480

Sales Venture Capital Writing Email 480

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. No-one complains if the sales price is ten times the investment since there is plenty to go around. The post VC investors: Don’t be greedy even if you can.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Both Sides of the Table

SEPTEMBER 10, 2021

On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. And the truth is that several entrepreneurs prefer it this way. However, to be a great VC you have to hold two conflicting ideas in your head at the same time.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

SoCal CTO

MARCH 1, 2010

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. They now have a cool new way to get intros to these angels: StartupList.

Pricing 150

Pricing Acquisition Customer Custom 150

Both Sides of the Table

JULY 7, 2015

If you follow the Twittersphere you may have noticed several people weighing in on this recent piece by Mike Isaac of the NY Times, asking “ How Many Angels is Too Many? I myself coined the term ENIFA (everyone now is a f **g angel) in 2011 but it didn’t stick as well as the term Unicorn did. Morrill said.

Angel 150

Angel Startup Seed Funding Invest 150

Both Sides of the Table

AUGUST 30, 2010

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Clearly this is is a trend and a topic that is interesting entrepreneurs. a priced/valued preferred stock financing)? a priced/valued preferred stock financing)?&#.

Equity 319

Equity Pricing Venture Capital Entrepreneur 319

Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Forecast sales-volume expectations.

Entrepreneur 102

Entrepreneur Startup Pricing Sales 102

Berkonomics

FEBRUARY 20, 2020

More than ever, the banks and lenders today require personal guarantees from entrepreneurs, and even from CEO’s of angel or some VC funded businesses. Starting and running a small or growing business can be a challenge to the most confident and optimistic entrepreneur. A novel reward for the entrepreneur from the board.

Company 156

Company Companies Venture Capital Entrepreneur 156

TechCrunch LA

MAY 14, 2020

Ettitude , the Los Angeles-based, direct-to-consumer startup making sustainable bedding and sleepwear from bamboo fibers, has raised a sustainably sized round that should keep the company going even in the face of an economic recession. So Yu turned to AngelList, which is where she found Dey. ”

Sample 184

Sample Startup Los Angeles Sales 184

Berkonomics

SEPTEMBER 3, 2015

His groundbreaking book, “Early Exits” has become a textbook for angel groups and entrepreneurs throughout the world. His Strategic Exits Corporation provides M&A advisory services, and he is much in demand as a speaker at angel and entrepreneur events worldwide. – Dave. By Basil Peters.

Pricing 120

Pricing Demand Marketing Email 120

Startup Professionals Musings

OCTOBER 19, 2022

Even if you ignore all the hype around crowdfunding, there can be no doubt that it is a real alternative for entrepreneurs to achieve visibility and funding today. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Product pre-order model. Marty Zwilling.

Funding 141

Funding Startup Outsource Development Satisfaction 141

Tech Zulu Event

AUGUST 27, 2013

Meet the next generation of startup success stories at Be Great Fest in Los Angeles. 17, entrepreneurs, investors, civic leaders and other key players in the tech industry will gather at the historic Pacific Design Center in West Hollywood, Calif. Although the Startup Genome Project named Los Angeles the No.

Los Angeles 101

Los Angeles Angel Startup Venture Capital 101

Both Sides of the Table

OCTOBER 22, 2010

On why you should be an entrepreneur, “A lot of people do what they have to do. Last night I co-hosted a dinner at Soho House in Los Angeles with some of the most senior people in the media industry with executives from Disney, Fox, Warner, media agencies and many promising tech & media startup CEO’s.

Entrepreneur 356

Entrepreneur Venture Capital Startup Email 356

Berkonomics

JUNE 29, 2017

[Email readers, continue here…] My very first investment as a professional angel was in a small startup where the entrepreneur’s vision fueled my imagination in the audio market niche where I had run a business in an earlier life. A small venture firm and a few more angels rounded out the total investment.

Invest 243

Invest Entrepreneur Sales Startup 243

Startup Professionals Musings

FEBRUARY 5, 2021

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Forecast sales-volume expectations.

Startup 147

Startup Pricing Sales Statistics 147

Startup Professionals Musings

OCTOBER 25, 2015

As an angel investor and a mentor to entrepreneurs I still see this every day. Every entrepreneur needs to start by setting a major purpose for embarking down a specific business path. Successful entrepreneurs do what they need to do without being told how to do it. Personal initiative. Imagination. Enthusiasm.

Entrepreneur 108

Entrepreneur Ideas Customer Custom 108

Berkonomics

MARCH 29, 2018

As one illustration among many I can recall, let me tell you the story of the first investment made by a newly organized formal group of angel investors. The young, eager entrepreneur immediately agreed, and the business was launched, well- funded and anticipating great profits. Some of you can guess that name of the group.

Startup 243

Startup Entrepreneur Invest Angel 243

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Seat on the board.

Invest 91

Invest Angel Startup Pricing 91

Berkonomics

JUNE 8, 2017

You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. There is a lot to say about retaining control.

Venture Capital 266

Venture Capital Class Invest Equity 266

socalTECH

JUNE 3, 2013

Brighter.com , the online, upfront dental pricing and referral service based in Santa Monica, and headed by longtime Silicon Beach entrepreneur Jake Winebaum, has relaunched, swizzling its model away from a monthly membership program and towards direct, upfront pricing and referrals to local dentists.

Santa Monica 178

Santa Monica Pricing Los Angeles Entrepreneur 178

Both Sides of the Table

SEPTEMBER 14, 2010

This is the third article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). And if I were an entrepreneur I’d rather find investors who understood “my space&# so that in tough times they felt comfortable about “doubling down.&#. Not everybody agreed.

Invest 152

Invest Angel Venture Capital Startup 152

Startup Professionals Musings

JANUARY 18, 2014

I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Do real tests with real pricing to see if customers will pay you, without being pushed. Nail the business model. How far behind is your startup?

Entrepreneur 113

Entrepreneur Startup Technical Review Customer 113