Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays.

Venture Capital 150

Venture Capital Capital Marketing Seed Funding 150

Both Sides of the Table

FEBRUARY 12, 2019

Over the past month a colleague ( Chang Xu ) and I sifted through data on the venture capital industry (as we do every year) and made a bunch of calls to VCs and LPs to confirm our hypotheses. As a result of the IPO window shifting we saw a massive inflow of public-market capital into the latest stages of venture. What gives?

Venture Capital 328

Venture Capital Invest Seed Funding Startup 328

Both Sides of the Table

APRIL 15, 2010

I was on This Week in Venture Capital (TWiVC) again this week with Jason Calacanis. You can watch this week’s TWiVC episode by clicking on the link and my summary notes are below. {if He’s behind IdeaLab and has created many interesting companies including innovating in solar energy ( eSolar ) and electric cars ( Aptera ).

Venture Capital 271

Venture Capital Capital Google Platform 271

Both Sides of the Table

OCTOBER 21, 2009

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). 2009 has been the worst year for M&A in a decade.

Venture Capital 241

Venture Capital Technical Review Southern California Company 241

Startup Professionals Musings

DECEMBER 11, 2019

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 121

Outsource Development Outsource Entrepreneur Summary 121

Startup Professionals Musings

OCTOBER 19, 2022

Yet as I mentor entrepreneurs around the country, crowdfunding still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined. As a summary, crowdfunding today can mean any one of the following five quite different models: Rewards model.

Funding 141

Funding Startup Outsource Development Satisfaction 141

Both Sides of the Table

JUNE 30, 2016

I understand this instinct for more capital and I have two very different personal experiences: In my first company we raised an A-round of $16.5 million and in my second company we raised only $500,000 by choice. Every time you ask for money you’re faced with the possible of feeling literally and figuratively like a failure.

Startup 292

Startup Software Review Pricing Entrepreneur 292

Startup Professionals Musings

SEPTEMBER 14, 2022

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Funding 104

Funding Summary Entrepreneur Acquisition 104

Startup Professionals Musings

MAY 6, 2023

If ten percent of these numbers, multiplied by your average product price, will get you the revenue you need to scale your business, you will get the love you need from angel and venture capital investors. Peruse company reports from your business domain.

Statistics 120

Statistics Research Report Newsletter 120

Startup Professionals Musings

FEBRUARY 15, 2021

For example, I once worked for a small software company selling a sophisticated enterprise workflow solution. As small companies, neither startup could afford to extend their product alone, but through creative leadership, we were able to negotiate a win-win strategic partnership for a joint product. We both often lost as a result.

Startup 173

Startup Outsource Development Examples Customer 173

Both Sides of the Table

MAY 28, 2018

Are you raising an appropriate amount of capital relative to your progress, relative to your team size and relative to your needs? VCs want you to raise the “appropriate” amount of capital, which I would define as what is reasonable given your progress to date, your resources and your needs for an 18–24 month period. Cash In Cash in.

Venture Capital 247

Venture Capital Capital Funding Demand 247

Both Sides of the Table

AUGUST 30, 2010

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price).

Equity 319

Equity Pricing Venture Capital Entrepreneur 319

Startup Professionals Musings

FEBRUARY 3, 2020

Almost instantly, via the Internet or on their smartphone in the store, they can find the lowest price alternative or their favorite features, without waiting for push marketing or listening to your best sales person. Capitalize on the multiplier moment. Bloom’s classic book, “ The New Experts: Win Today's Newly Empowered Customers.”

Customer 124

Customer Custom Startup Course 124

Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. Capitalize on current initiatives, such as the recent Obama Administration Green Energy Stimulus, which pumped more than $50 billion into startups.

Pricing 100

Pricing Equity Technical Review Research 100

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. In the best cases boards come together to help the company get through its trough?—?in

Startup 269

Startup Venture Capital Layoffs Resource 269

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

Venture Capital 398

Venture Capital Technical Review Startup Seed Funding 398

Both Sides of the Table

DECEMBER 27, 2011

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. Internet scale.

Startup 418

Startup Venture Capital Sales Technical Review 418

Startup Professionals Musings

JUNE 2, 2021

As a business advisor, I have to recommend even to established companies that they review and revamp their competitive strategy now, even if it appears to be working today. Features, availability, and brand are just the price of entry. The real challenge is to win massive consumer preference repeatedly.

Competition 142

Competition Software Review Social Media Customer 142

Startup Professionals Musings

AUGUST 14, 2020

If ten percent of these numbers, multiplied by your average product price, will get you the revenue you need to scale your business, you will get the love you need from angel and venture capital investors. Peruse company reports from your business domain.

Marketing 157

Marketing Statistics Research Report 157

Both Sides of the Table

JUNE 28, 2018

My friend Michael Broukhim, founder & co-CEO of FabFitFun and I recently had a catch-up meeting for 3-miles on the Santa Monica “Bird Trail” No company has ever elicited so many questions by friends, colleagues, entrepreneurs, fellow VCs and journalists as has Bird, the company that pioneered the electronic scooter as a service market.

Santa Monica 256

Santa Monica Funding Startup Course 256

Both Sides of the Table

AUGUST 30, 2014

When I meet other VCs I’m constantly asking how they decide which investments to make, when to pass, when to do follow-on rounds, when to sell a company vs. when to go long, etc. He came to me months ago asking about a “strategic round” of capital for his startup at a high price. Take more advice.

Startup 407

Startup Framework CTO Coach Sales 407

Startup Professionals Musings

DECEMBER 8, 2019

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Summary 121

Summary Startup Entrepreneur Funding 121

Startup Professionals Musings

SEPTEMBER 25, 2020

The world keeps changing, and visible business strategies that worked well in the past, including being the premium brand or low price producer, simply don’t get the customer loyalty they once did. Today, customers are looking for real relationships, a memorable shopping experience, and satisfaction of a higher purpose.

Customer 133

Customer Custom Satisfaction Examples 133

Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. The VC assumes you’ll have an option pool.

Venture Capital 405

Venture Capital Pricing Startup Funding 405

Startup Professionals Musings

JANUARY 22, 2018

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 72

Outsource Development Outsource Summary Training 72

Startup Professionals Musings

JULY 25, 2015

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 104

Outsource Development Outsource Startup Summary 104

Both Sides of the Table

NOVEMBER 14, 2017

An alternate outcome that I also unfortunately observe in some cases are companies who had extreme early success with an initial product adoption but failed in key areas that limited the growth and therefore the ultimate financial outcomes. As an early-stage VC I love this phase. How profitable is my product or service?

Startup 286

Startup Technical Review Customer Custom 286

Both Sides of the Table

APRIL 19, 2011

Or read the quick, informative summary below the image! Don’t and you might make one catastrophic mistake that leaves you in the annals of Effed Companies. He is very hands-on and helpful – especially for any company looking into customer acquisition. Here’s a summary of our interview.

Acquisition 304

Acquisition Startup Customer Custom 304

Both Sides of the Table

JULY 1, 2015

“the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. get out and raise money now because when markets change they change on a dime and capital completely dries.

Startup 150

Startup Marketing Customer Custom 150

Both Sides of the Table

MAY 21, 2019

Often these projects took 12–18 months so by the time companies shipped product they often found out that the product didn’t meet customer needs. I think the best run companies let executives make most of the hard decisions and should try to be helpful in thinking through high-level strategy and weigh in on difficult topics.

Startup 234

Startup Slides Venture Capital Course 234

Startup Professionals Musings

JUNE 18, 2014

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 92

Outsource Development Outsource Entrepreneur Startup 92

socalTECH

DECEMBER 10, 2012

But, how do you do that in a way that doesn't cannibalize your full price tickets and screw up your brand? On the flip side, over the last several decades, ticket prices have appreciated every year. An example of that is in travel and hotel chains, where there is full dynamic pricing. That's your retail channel.

Entertainment 219

Entertainment Pricing Ticketmaster Startup 219

Startup Professionals Musings

AUGUST 30, 2015

Almost instantly, via the Internet or on their smartphone in the store, they can find the lowest price alternative or their favorite features, without waiting for push marketing or listening to your best sales person. Capitalize on the multiplier moment. Bloom’s classic book, “ The New Experts: Win Today's Newly Empowered Customers.”

Customer 101

Customer Custom Startup Course 101

Both Sides of the Table

MARCH 31, 2012

Many MBA programs still cater too much to the needs of large, corporate management jobs or prepare students to enter big consulting companies or investments banks. I got an email recently from my friend & fellow VC, Jeff Bussgang from Flybridge Capital Partners in Boston. In Summary. And that leads me to today’s post.

Startup 319

Startup Sales Course Competition 319

Both Sides of the Table

FEBRUARY 28, 2018

There has always been tension between CPG (consumer packaged goods) companies and the retailers who sell their products to consumers. If a consumer will pay a fixed price for a product or service then the battle over who gets the margin in any sale is between the person who merchandises a product and the person who manufactures it.

Product 296

Product Course Customer Custom 296

Startup Professionals Musings

JANUARY 13, 2018

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Summary 79

Summary Startup Entrepreneur Funding 79

Startup Professionals Musings

JULY 19, 2014

Almost instantly, via the Internet or on their smartphone in the store, they can find the lowest price alternative or their favorite features, without waiting for push marketing or listening to your best sales person. Capitalize on the multiplier moment. Bloom’s recent book, “ The New Experts: Win Today''s Newly Empowered Customers.”

Customer 98

Customer Custom Entrepreneur Startup 98