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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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New Doors

Eric Greenspan

As I write this, the articles and comments about my company’s demise continue. Considering we never had anyone even remotely interested in acquisition over the years, I’m not sure the company had a future regardless of its demise. There are no deep pockets, there’s no safety net. Do they really believe that?

IBM 191
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The @TWTFelipe Story – A Tale of US Visa Policy Gone Awry (#startupvisa)

Both Sides of the Table

I’ve been meaning to write this post since September of last year when Brad Feld first wrote about the The Founders Visa Movement. I commented briefly on his blog and made a mental note to write a blog post. At the time he granted me permission to write about his story. Felipe grew up in Brazil.

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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!” Gross Profit (also called Gross Margin or sometimes “Net Revenue”). One of them is profitability. Simplifying: Revenue -.

Startup 418
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

For much of 2013 I watched the press write articles about how the YouTube “MCNs” (multi-channel networks) were doomed and tried to square that with the data I was watching at the one I invested in, Maker Studios, who has had one hell of a year. Selling at smaller retailers will net you fewer customers and higher margins.

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Should Startups Care About Profitability?

Both Sides of the Table

This is not atypical for “middle men” who often take 15–30% of the value of the sale If you’re shaking your head and thinking, “duh” I promise you that even some of the most sophisticated people I know get off track on this issue of “gross revenue” versus “net revenue.” Not necessarily. This is the trade-off between profits & growth!

Startup 227