Most Common Early Start-up Mistakes

Both Sides of the Table

This is part of my ongoing series “ Start-up Lessons. &# If you want to subscribe to my RSS feed please click here or to get my blog by email click here. Imagine you pour 5 years of your life into your next gig and it starts to become successful. Many times the answer is ‘no.&# The problem is that you’re opening yourself up to a claim by one of these people that you somehow stole their ideas. Starting with 25% is even harder.

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?

Risk, insanity, and the 50% startup rule

Berkonomics

How to define “success” for a startup? Vision, risk and capital, oh my! Everyone has a vision when starting a business. And few think of the risks that increase over time as initial capital is expended. Starting up

Risk, insanity, and the 50% startup rule

Berkonomics

How to define “success” for a startup? Vision, risk and capital, oh my! Everyone has a vision when starting a business. And few think of the risks that increase over time as initial capital is expended. Starting up

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. 7A: The 7A program is a variable rate loan program also serviced by local banks and guaranteed at 90% by the federal government to finance inventory, refinance debt and for other working capital needs. Angel Investors & Venture Capital.

Can a revolutionary concept be too late to market?

Berkonomics

Too many startup businesses, especially in the technology world, are built upon brand new concepts that have not yet been proven in the field against products from other companies that already have revenues flowing. Starting up Positioning

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.

Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. Are the write ups worth doing or not?

Venture Capital is About Human Capital

Both Sides of the Table

After a decade on the job I’ve started to speak more openly when newer industry colleagues now ask me what I’ve learned. We then help surround founders with other talent who want to join important causes but don’t have the startup idea themselves. Venture Capital is a people business.

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

This is part of my ongoing series called “ Start-up Lessons.&#. I came across this blog post about getting a computer science degree as the best degree for getting into venture capital or working at a VC-backed start up. Like Chris Dixon I grew up programing.

Going long on LA, India, AI and tech infrastructure March Capital raises $300 million

TechCrunch LA

March Capital Partners , the Los Angeles-based venture capital firm, has raised $300 million for its latest fund. Those two San Francisco-based operations have been a pipeline for interesting startups that have become March portfolio companies.

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.

Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Clean up your own shite. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008.

Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

This is part of my ongoing series on Startup Advice. As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting.

Startup Founders Should Flip Burgers

Both Sides of the Table

This is part of my ongoing series Startup Advice. This is a story of one of the risks of venture capital. When you’re an early-stage startup that hasn’t raised any institutional money you end up doing almost every job function of the company yourself.

The Fallacy of Channels: Startups Beware

Both Sides of the Table

This is part of my ongoing series on startup advice but also filed under my sales & marketing posts. No advice I give will ever apply to 100% of companies, 100% of startups or even 100% of tech startups. The sales market is as pure capitalism as it gets.

How to Improve Hiring at Startups

Both Sides of the Table

This is part of my ongoing series with Startup Advice. BEFORE YOU START. Example: Work Experience can be broken down into: has managed a team, has led direct sales efforts, has worked for a startup before, etc. I usually say right before I start interviewing (e.g.

What is the Right Amount of Money to Raise at a Startup?

Both Sides of the Table

This is part of my ongoing series on Raising Venture Capital. Recently I’ve been debating with a number of young startup companies that are raising money in the next few months, “what is the right about of capital to raise at a startup?&#.

Include your labor value in your plan.

Berkonomics

Investors love it when entrepreneurs draw little or no money from their startups. You could start by charging more for your executive salary, then paying out less in cash, accruing the rest into a payable amount due to the entrepreneur. Starting up

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.

2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

It is also a result of pent-up demand. So we loaded up on flat screen TVs, multiple generations of iPods and trips to Hawaii. When the market run started in March people were relieved that “the world wasn’t ending” so they started spending again.

3 Sales Tips for Startups – Creating a Burning Platform

Both Sides of the Table

This is part of my ongoing series Startup Advice. Many entrepreneurs who start technology companies are product people, technologists or savvy business people who worked previously for a larger company. Most start-up entrepreneurs have little or no sales experience.

Tips 339

A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. “We’re Others believe that new business models are emerging that could replace venture capital all together. startup

The Fifty Percent Startup Rule

Berkonomics

Everyone has a vision when starting a business. And few think of the risks that increase over time as initial capital is expended. If not, there are alternatives, such as raising initial capital from friends and family, before leaving the life boat of a present job. . Then again, with the fifty percent rule, aren’t all entrepreneurs a bit insane to start? Starting up Fifty percent of all businesses formed fail within the first two years. .

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. conference launch investment jason capital venture calacanis

Alternative Accelerators and Start-Up Resources

SoCal Tech Calendar

Thursday, June 30, 2016 -- Alternative Accelerators and Start-Up Resources. Today, start-ups have more choices for accessing business resources and seed funding than ever. This is especially true for first-time and early-stage entrepreneurs not yet ready to pursue venture capital or who lack certain critical capabilities. The next Mobile LAVA will present some of these different equity partners available to start-ups in today’s rapidly evolving tech landscape.

Alternative Accelerators and Start-Up Resources

SoCal Tech Calendar

Thursday, June 23, 2016 -- Alternative Accelerators and Start-Up Resources. Today, start-ups have more choices for accessing business resources and seed funding than ever. This is especially true for first-time and early-stage entrepreneurs not yet ready to pursue venture capital or who lack certain critical capabilities. The next Mobile LAVA will present some of these different equity partners available to start-ups in today’s rapidly evolving tech landscape.

Consolidation is coming to gaming, and Jam City raises $145 million to capitalize on it

TechCrunch LA

A slew of banks are coming together to back a new roll-up strategy for the Los Angeles-based mobile gaming studio, Jam City and giving the company $145 million in new funding to carry that out.

Kevin O'Connor, ScOp Venture Capital, On Startup Success and Investments

socalTECH

This morning's interview is with Kevin O'Connor , a longtime investor and serial entrepreneur, who is now running venture capital investment firm ScOp Venture Capital. Congrats on the new name for your venture capital firm. I ended up doing that for eight years, when it was bought by Amazon for use in Alexa, which is really cool. Just this past September was a year with Amazon, when I left, and we started investing in September under the new name, ScOp Venture Capital.

Invest 130

73.6% of all Statistics are Made Up

Both Sides of the Table

of all statistics are made up. Here’s how I learned my lesson: I started my life as a consultant. I had to read each report, synthesis it and then come up with our best estimate of the markets going forward. How to Interpret Analyst Reports.

Good Judgment Comes with Experience, But Experience Comes from Bad Judgment

Both Sides of the Table

This is part of my Startup Advice series of posts. I heard Bruce Dunlevie of Benchmark Capital say these words at a conference in London nearly 10 years ago. I’m fond of saying that I F’d up everything as a first time entrepreneur.

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. Guest article by Eva Hibnick with General Assembly LA.

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

Both Sides of the Table

Tags: Pitching VCs Start-up Advice startup technology vc venture capital

Guide 259

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

Berkonomics

If they are not achieved within the expected time, the reasons must be analyzed by you and by your board and acted upon to avoid loss of capital beyond plan or expectation. Reduce further expenditures of remaining capital and protect the assets purchased with the original investment.