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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. So if you’re able to raise easily no problem.

Metrics 150
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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

No blog post about how Tiger is crushing everybody because it’s deploying all its capital in 1-year while “suckers” are investing over 3-years can change this reality. But it will be patiently deployed, waiting for a cohort of founders who aren’t artificially clinging to 2021 valuation metrics. It’s just math.

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5 Keys To A Viable Spending Rate And Cash Management

Startup Professionals Musings

Cash flow is a basic survival metric for every startup. Count on six months from beginning the funding process until a new check is cashed. Always add 20 percent to your best estimate of funding requirements when approaching investors. Desperate entrepreneurs lose their leverage and die young. You will make mistakes.

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What I’ve Learned About Venture Funding

Both Sides of the Table

VC funding. We love capital efficiency until we love land grabs until we abhor over funding until we get huge payouts and ring the bell for more funding until we attract every non-VC on the planet to invest in startups until it crashes and we start the cycle all over again none the wiser. blog here ). Same as I felt.

Funding 150
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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

We all know that funding markets have changed for startups. The trends are well understood: more angels, more seed funds, more crowdsourcing and so forth. They asked LPs to rush to get into their next side-car fund to have access to this great deal plus the LPs also get the “benefit” of investing in their next fund.

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8 New Business Keys To Success For Real Entrepreneurs

Startup Professionals Musings

Building your public image and presence should start even before product development, through your website, logo, and blogging. You don’t have to be a heavily funded later stage startup to get access to “big data,” customer analytics, and metrics dashboards. Establishing your brand with interactive social media.

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Pricing Customer Acquisition Sunk Costs and More - Ten Recent Great Startup Posts

SoCal CTO

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. Great stuff. Jason looks at the issues around "sunk cost." Good stuff from Jason.

Pricing 150