Project cash flow – not just profit – during start-up.

Berkonomics

There is no longer a guarantee that VCs and later stage investors will be waiting at the run-out point of the angel money to pick up and grow the company. Cash is everything to a new business. How many times do we have to say this?

Startups: What are your odds for success?

Berkonomics

Starting a company is HARD – in so many ways. I read several years ago, that the average startup restaurant lasts only about a year. Restaurant startups would not top my list. And this includes all businesses, not just startups. Starting up a new company is risky.

Financing a Start-Up

Tech Coast Venture Network

Virgina Lorimor There are several options for financing a start-up business that tend to follow a natural course in a business’ development: Personal Investment. This is where all entrepreneurs have to start. Angel Investors & Venture Capital. Groups like Tech Coast Angels and Octane hold pitch sessions to hear entrepreneurs sell their businesses. “OC’s Premier Incubator – Supporting Start-Up Businesses in Our Business Collective&#.

After 20 years: Updating the Berkus Method of valuation

Berkonomics

There is a universal truth: fewer than one in a thousand start-ups meet or exceed their projected revenues in the periods planned. I should have done more about this subtle interpretation when first seeing this, and will attempt to make up for that now. Well, it had to happen.

REVIEW | Un-Realistic TV: “Start-ups: Silicon Valley”

Tech Zulu Event

The final episode of Bravo’s Start-ups: Silicon Valley aired recently, wrapping up an 8-episode run of what could be considered the most bizarre depiction of entrepreneurs and start-ups to date. They can’t believe people are not lining up to give it them.

Which is more important: Management quality or a better plan?

Berkonomics

Checking with professional investors from angels to VC’s, the answer appears to be near unanimous: the quality of the proposed or actual management team comes in a strong first, before the attractiveness of the business plan itself. Starting up Surrounding yourself with talent

Meet Lumi, the Los Angeles startup that just raised $9 million for a packaging business

TechCrunch LA

Fundings & Exits Logistics Startups TC lumi Spark Capital Los Angeles packaging eCommerce online retail online shopping e-commerce forerunner ventures

Inaugural Open Angel Forum Was a Success

Both Sides of the Table

Last night I attended the inaugural Open Angel Forum event started by Jason Calacanis , a fellow LA resident. Jason started the Open Angel Forum in response to his frustration that entrepreneurs were being charged by some angel organizations to present at their events.

Angel 308

Los Angeles is using ride-hailing startup Via to shuttle people to public transit

TechCrunch LA

Los Angeles is partnering with on-demand shuttle-based service Via as part of a pilot program that will give people rides to three busy public transit stations. Transportation arriva chicago Los Angeles Lyft New York public transport transport Uber United Kingdom via Washington D.C.

Meet Lumi, the Los Angeles startup that just raised $9 million for a packaging business

TechCrunch LA

Fundings & Exits Logistics Startups TC e-commerce eCommerce forerunner ventures Los Angeles lumi online retail online shopping packaging Spark Capital

Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. It starts as a debt instrument (e.g. And it adds up.

Should Your Startup Have an Advisory Board?

Both Sides of the Table

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. If you plan to set one up – no problem. come out of the gate strong and never let up) then you might get some attention. So you set up advisory meetings.

How to Work with Lawyers at a Startup

Both Sides of the Table

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. Many people start companies arse backwards.

Silicon Beach Start-Ups Venice

Tech.Co

Silicon Beach Start-Ups was formed to get together like minded people involved in tech start-ups on the West Side of Los Angeles. The founders run a start-up making and marketing mobile applications out of their offices in Santa Monica. This group is for entrepreneurial types to get together share their victories, defeats and help each other out generally

Don’t get hung up on valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney 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.

Startup Boost Los Angeles Opens Apps For Spring Program

socalTECH

Startup Boost Los Angeles , the early stage startup program which is led in LA by Matt Stoddard, says it has opened up applications for its Spring 2019 program. According to Stoddard, it is looking for nine early stage startups to participate in its eight-week program. Startup Boost says it is looking for companies with the right team, a minimum viable product, customer traction, and viable plan for going forward.

22 Los Angeles Startups You Need to Watch Out For

Tech.Co

While the Bay Area hold the title of most prolific startup ecosystem , there’s no denying that California is a veritable gold mine of entrepreneurial talent. Los Angeles, for one, is not only brimming with innovative ideas, it’s also home to a wide range of unique startups that are solving the problems of the world. This is evident from the fact that they are owned and run by EY’s Entrepreneur of the Year award finalists in the Greater Los Angeles area.

Los Angeles investors and entrepreneurs launch PledgeLA, a diversity and inclusion program

TechCrunch LA

Demographics at funds and startups will also be under the microscope, since signatories have agreed to report on their composition by race, gender, age, sexual orientation, disability status, immigration status, veteran status, educational attainment, socioeconomic origin, tenure at a firm.

Elementary Robotics raises cash to expand in Los Angeles’ growing robotics hub

TechCrunch LA

million in seed funding to begin building a manufacturing facility and expand its presence in Los Angeles as the city continues to grow as a hub for robotics and automation. . ” Recent Funding Robotics Startups TC Elementary Robotics Los Angeles

Once again: Is it the jockey or the horse?

Berkonomics

If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. Starting up Surrounding yourself with talentEarly stage investors have been arguing over this for years.

Once again: Is it the jockey or the horse?

Berkonomics

If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. Starting up Surrounding yourself with talentEarly stage investors have been arguing over this for years.

I Want My CIC! … The Benefits for Startups to Be Co-Located

Both Sides of the Table

I recently wrote a blog post about why I believe that startup teams in close proximity perform better. I guess I shouldn’t be surprised – I got a similar lukewarm reaction when we started Launchpad LA and that seems to be going pretty well.

The Berkus Method: Valuing an Early Stage Investment.

Berkonomics

For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point. Starting up Raising money

Invest 250

Intro to the LA Startup Scene

Tech Zulu Event

Article after article points out that Los Angeles is on its way to becoming one of the most robust startup communities in the United States. Sam taught a second rendition of the class in February and over 700 people signed up.

Calacanis Starts Up New Venture Fund

socalTECH

Not only is he running his own technology conference, Launch, he''s also making angel investments, and opening up his own coworking space , he''s also created a new venture capital fund, the Launch Fund. Jason Calacanis is busy.

Tech Coast Angels-San Diego Sees Big Growth In Angels

socalTECH

The Tech Coast Angels San Diego (TCA-SD) angel investment network, the San Diego arm of the Tech Coast Angels, has seen a big growth in the number of angel investors who are members of the group this year, the group said this week. The group said the growth both comes from the overall growth of the startup ecosystem in San Diego, as well as elevated interest in early-stage investing. tech coast angels diego angel investment venture capital sandiego

The Power of “In Person” – Why Distributed Teams are Less Effective

Both Sides of the Table

In the era of Skype, web conferencing tools and collaboration software conventional wisdom says that distributed startup teams can be just as effective as those that are in person. There reality is that a certain magic that happens when you’re in person is critical in a startup.

Angel Funding Advice

Both Sides of the Table

Last night I attended a DealMaker Media (whom I love because they always host such great discussions) panel on raising angel money moderated by Dan Gould and with panelists Rob Hayes (First Round Capital, more seed or A round than angel), Scot Sangster (with OrganicStartup and [.]. Tags: Pitching VCs Start-up Advice This is part of my ongoing series Pitching a VC.

Angel 251

What would you do if told to “fail fast?”

Berkonomics

My favorite story of a fast failure was of a technology incubator started in the year 2000 with optimistic money from several angel investors, including me. He volunteered to close the incubator and he returned 96% of our investments to all of us angel investors.

What would you do if told to “fail fast?”

Berkonomics

My favorite story of a fast failure was of a technology incubator started in the year 2000 with optimistic money from several angel investors, including me. He volunteered to close the incubator and he returned 96% of our investments to all of us angel investors.

Shopify opens its first brick-and-mortar space in Los Angeles

TechCrunch LA

Shopify , the provider of payment and logistics management software and services for retailers, has opened its first physical storefront in Los Angeles. TC Apple apple store business Chief Operating Officer e-commerce economy Los Angeles Marketing online shopping Shopify toronto vend

You Can’t Look for a Job from a Remote Location – It Doesn’t Work

Both Sides of the Table

A friend calls me up from “you name it&# city: Boston, New York, Chicago, San Francisco and says, “I’m thinking about moving to Los Angeles (or SF, NY, etc) and I’d love to start interviewing. Let’s start with the obvious.

Never Hire Job Hoppers. Never. They Make Terrible Employees

Both Sides of the Table

This is part of my startup advice series. It’s still important advice for startup founders and something that I’m passionate about. Tools like Identified.com haven’t existed for me to do this in an automated way as they are starting to emerge.

Geni 401

WTF is Traction? A 6-Step Relationship Guide to VC

Both Sides of the Table

You’ve pitched several angels and VC’s. Tags: Pitching VCs Start-up Advice startup technology vc venture capital This is part of my ongoing series “Pitching a VC&# – the outline is here. Everybody seems to like you but nobody seems to be getting out their checkbooks. Most of them are telling you that they just need to see a bit of traction before they’d be prepared to [.].

Guide 259

What Makes an Entrepreneur (5/11) – Inspiration

Both Sides of the Table

I started the series talking about what I consider the most important attribute of an entrepreneur : Tenacity. But in that moment of hearing the news, I tried to remind myself that dwelling in the negative never helps, that in fact every kick to the head provides motivation to crank it up.