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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 -.

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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. The VC-backed businesses sometimes “blow up.”

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Why Acceptance of Failure is Critical to Startup Success

Both Sides of the Table

You also ran the risk that if you hired employees quickly and then demand wasn’t as strong as expected it was incredibility hard to fire people. 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.

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Report: The Bay Area Isn’t Bleeding Tech Workers After All

Tech.Co

You’d be forgiven, then, for assuming the city is seeing a net loss of tech workers. The impact can be seen in the skills gap — the San Francisco Bay Area has the largest skills gap among the locations covered by LinkedIn’s report, meaning that supply isn’t keeping up with demand. Source: LinkedIn.

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

Both Sides of the Table

He built & IPOd Demand Media. And of course we have great public companies that have spanned content & communications like J2 Global whose market cap as of this writing is a cool $2.5 But our best Internet software engineers have historically been exported on a net basis to the Bay Area. for $565 million to Excite.

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The Case For & Against Cryptocurrencies (for those tired of all the noise)

Both Sides of the Table

In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well. Unsurprisingly a whole generation of first time stock traders became jaded about not just Internet stocks but the entire public stock market system as many people lost a large portion of their net worth.

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