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On Funding?—?Shots on Goal

Both Sides of the Table

When you first start your career as an investor (or when you first start writing angel checks) your main obsession is “getting into great deals.” You need shots on goal as not every one will go in the back of the net. You’re thinking about one bullet at a time. billion When Ring started, even the folks at Shark Tank wouldn’t fund it.

Funding 294
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383
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Should Startups Care About Profitability?

Both Sides of the Table

Venture capital isn’t right for many business but if you do want to raise from a VC at some point you need to understand that often investors care more about growth than profits. They raised $5 million in venture capital to fund growth. Are you looking to potentially sell the company in the next year or two? Not necessarily.

Startup 227
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Have easy access to capital by investors who are committed to building businesses at Interent scale. One of them is profitability.

Startup 418
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Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

Given how efficient markets are when a large market like LA starts to blossom it attracts capital pretty quickly. billion in venture capital to LA’s technology startups and 2014 will shatter that figure. Both are massively funding other LA tech companies through what Fred Wilson once defined as “recycled capital.”

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Obtain Impactful Recommendations And References Leverage: Social Norming To Get Into Graduate School Or Score A Job

InfoChachkie

As noted in Net Profit Score , salespeople have used references as a means of establishing credibility with strangers for hundreds of years. Thus, cite quantified results, such as percentage growth in revenue, number of new accounts closed, Net Promoter Scores achieved, etc. Start by writing a draft of your reference.

Startup 113
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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

I recall being impressed with Jeff, but I was concerned that he was creating a platform, which often requires a significant amount of capital, takes an extended amount of time to establish and can be subject to margin pressure as the enabling technologies become commoditized. John Greathouse <john *@ *.com> com> 4/25/08.