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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. Many angels I know have signed over more than their comfort level in just 12 months and then feel stuck.

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 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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What’s the Real Deal with AngelList?

Both Sides of the Table

This is a blog post I really didn’t want to write. I didn’t want to write it because I have mixed feelings about AngelList. I didn’t want to write it because the bloggosphere doesn’t always do nuance well. So why I am writing it then? What about “angel&# investors? A few reasons.

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Why Acceptance of Failure is Critical to Startup Success

Both Sides of the Table

People of Korean descent in Los Angeles are amongst the most entrepreneurial people I know — in technology but also in garments, fashion, food and so forth. After all, if people feel more of a safety net for trying and not succeeding more people are bound to try in the first place and more innovation is almost inevitable.

Startup 261
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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.” They both raised angel / seed money of $1.5 Not necessarily.

Startup 227
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Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

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. Many people don’t realize that the majority of the monetization of the Internet originated in Los Angeles but was perfected in Silicon Valley. LA By The Numbers.