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A heartbreaking story about time and money.

Berkonomics

First, think about your time as money! How about young or pre-revenue companies? And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result. The post A heartbreaking story about time and money. We’ll get to my heartbreak in a minute.

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About personal use of corporate assets

Berkonomics

This insight addresses more the impact of such behavior upon the actions of employees and others who observe that behavior from a senior manager or owner of a business – and know that they cannot say anything about it without jeopardizing their jobs. The post About personal use of corporate assets first appeared on BERKONOMICS.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals.

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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? About $1 million. Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. Him: But when I raised my first round we didn’t know how to price the company. The price is simply the price.

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Can you defend your pricing niche against your competition?

Berkonomics

There can be nothing more important in your business planning that selecting the proper pricing niche, making your story clear using that niche, and the defending your position against the competition. They are: Price. Think about your positioning. The danger of competing on price. The five major niches.

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Should Startups Care About Profitability?

Both Sides of the Table

They actually lost about $175 million in cash in that quarter, FWIW. I know this seems obvious but I promise you that even smart people forget this when talking about profitability. They raised $5 million in venture capital to fund growth. See appendix if you want to know more on this.) What did they actually do?

Startup 227
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Startups have about $1 trillion worth of reasons to love the Biden infrastructure plan

TechCrunch LA

The sweeping infrastructure package put forward today by President Joe Biden comes with a price tag of roughly $2 trillion (and hefty tax hikes) but gives startups and the broader tech industry about $1 trillion worth of reasons to support it. What excites me about this space is that there’s so much low-hanging fruit.

Startup 229