Your Product Needs to be 10x Better than the Competition to Win. Here’s Why:

Both Sides of the Table

It was a pleasure to write them myself. They would launch quickly and test whether or not there is any demand. I brought up the fact that I find many larger companies abusing the patent system to slow down smaller competitors which is actually anti competitive.

Can you overcome five risks and create wealth?


This risk can be mitigated by finding a customer willing to purchase as soon as a proven model is completed, and willing to state this in writing. And fifth: Competitive risk. . Of course, we are speaking of increased valuation of your company when we speak of “wealth.”

Who Should be on Your Startup Board?

Both Sides of the Table

This is the norm and unless you have a hugely competitive round it’s not worth fighting. This is not true in the majority of cases but rather when you have competition in your round and feel confident in using your leverage.

Can you profit by serving early adapters?


They allow me to preview new devices and technologies before release so that I might write about and speak about them in my “Tech Trends” keynotes. It did not hurt that Apple always seemed to trump the competition in design of the product and the product’s user interface too.

How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. This is part of a series I’ve been writing on fund raising.

The Loneliness of Success that Nobody Talks About

Both Sides of the Table

They suffered in trying to live up to public perceptions and the demands to continue their successes.

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Understanding the Underbelly of Online Marketing & Why You’ll Lose if You Don’t

Both Sides of the Table

It’s building a product that is substantially differentiated, and, as Bill Gross, one of the most prolific tech entrepreneurs of our era says, “ It needs to be 10x better than the competition ” (because if you shoot for that then in competitive markets you might achieve 3x.

How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

If you’re raising a round where a new lead investor would invest $5 million the VC fund must have no less than $100 million and if you’re looking for them to write $15–20 million as the lead their fund realistically should be at least $400 million.

Don’t Let Faux Unicorns Screw Up Your Financing


If such write-downs only impacted the faux unicorns and their avaricious investors, there would be little need for alarm. Prudent investors do not demand that entrepreneurs pursue bet-the-company strategies. A version of this article previously appeared on Forbes.

7 Business Mistakes Serial Entrepreneurs Never Make (Twice)


Fallacy: Startup ventures tend to evolve, especially after you begin speaking with pesky customers and demanding partners. Thus, you have negotiating leverage as long as a legitimate, competitive threat exists. “Learn from the mistakes of others.

The Audacious Plan to Make Electricity as Easy as WiFi

Both Sides of the Table

It’s true the some VCs have started writing so many checks that they resemble stock pickers but the majority of us still have less than 10 board seats at any time and tend to go pretty deep so the result is that we care deeply about where we commit our time. Was there consumer demand?

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Ten Rookie Startup Mistakes You Won’t Make


Fallacy: AdVentures tend to evolve once you begin speaking with pesky customers and demanding partners. 5) Allow Partners To Write Your Agreements. Thus, I will let my Big Dumb Company (BDC) partner write our agreement. “Learn from the mistakes of others.

Address the five risks to increase your valuation.


This risk can be mitigated by finding a customer willing to purchase as soon as a proven model is completed, and willing to state this in writing. And fifth: Competitive risk. If there are high barriers to entry with such protections as patents, long development time already spent or contracts with the major potential customers, then the risk of a competitor with more resources jumping into the frothy pool and taking advantage of the demand created by the company is minimized.

This Week in VC with Mo Koyfman of Spark Capital

Both Sides of the Table

We both felt that the critical reasoning skills and writing skills were critical to our career development. Competition: Gilt Groupe , Ideeli , RueLaLa (sub of GSI Commerce) , OneKingsLane , department stores like Saks and Neiman Marcus.

What I Would Look for When Choosing a VC – Knowing What I Know Now?

Both Sides of the Table

So I thought I’d write about out with what I would look for in a VC knowing what I know now and why. It’s insanely competitive to get into our industry so most have degrees from institutions like Stanford, Harvard, Wharton and University of Chicago (blatant plug ;-).

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The Case For & Against Cryptocurrencies (for those tired of all the noise)

Both Sides of the Table

In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well. This market structure in which the few, large players use their market position to eliminate competition is inevitable.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. while acknowledging that San Fran deals are often higher valuations due to increased competition amongst investors. Use competition to make sure you get a fair price.

The Authoritative Guide to Prorata Rights

Both Sides of the Table

For starters some funds are small and thus while they put $750k into your company to own 10% of your company they might not be able to write another $2 million if you then raise a $20 million round (10%). Or your A-round investor who wrote a $5 million for 25% of your company may not be well positioned to write another $5 million (25%) of a $20 million round. Smart entrepreneurs have often used this competition / appetite to invest to their advantage.

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

The questions that a VC mulls before writing a check are precisely the questions you should be asking yourself. Essentially products that are “inelastic” means price increases don’t affect demand much (think cigarettes, drugs, alcohol) and if they’re “elastic” it means small price increases can massively drop demand but equally large price decreases can massively increase demand. Competition.

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Frank Addantes FounderBlog: So, you need to develop a product?

Frank Addante

By Frank Addante Development resources are in high demand. There are a lot of people out there who can "write code", but very few good engineers. Bringing in Steady engineers too early could result in a less competitive product, bringing them in too late could result in instability.

The Most Interesting Online Video Trend

Both Sides of the Table

For those who still don’t know the origins, the Harlem Shake started as a small skit from a YouTuber named Filthy Frank (10 million views as of this writing) on January 30, 2013. This article originally appeared on TechCrunch.

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RingRevenue Creates A New Performance Marketing Revenue Channel


9) In Getting The Band Back Together , I write about the power of serial Founding teams. Who do you view as your biggest competition? Performance marketing also demands accountability.

Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” If there was strong market demand for their product then this investment might pay off handsomely.

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A Few Key People Really Can Make a Huge Difference

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He listed all of the product releases that were up coming, the customers that were in the pipeline and where he saw his competition moving. I don’t write about LA but I write from LA. This article originally ran on TechCrunch. I’m in Seattle this week.

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It is satisfying, but rarely profitable, serving early adopters.


They allow me to preview new devices and technologies before release so that I might write about and speak about them in my “Tech Trends” keynotes. I am a gadget freak, often purchasing new technologies in their first release. And my closet is full of such gadgets, from early pen-based computers to early brick-sized cell phones to an electronic handwriting recognition pad received as a gift to test. These early dives into new technologies serve a purpose for me.

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. If I get demand from people after this video to do a deeper dive on term sheets we will.

Why I’m Doubling Down on the Twitter Ecosystem

Both Sides of the Table

DataSift = platform for companies to develop cost-effective applications using this Twitter data to gain advantage relative to their competition. Most wont write stuff publicly because they fear retribution. I can’t put it in writing but I won’t stop it.”

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Raising $$ on AngelList? Working w/ McClure? Ask Jody Sherman

Both Sides of the Table

Jody soon met with Dave McClure who ended up immediately writing a check as a placeholder investment and offering help to get EcoMom press coverage. It could be a bubble or better balance of supply and demand.

How to Choose a Smart Home Hub (+ Infographic)

Tech Zulu Event

Additionally, the large differences between the demands of devices found in a home make this unlikely; what is good for powering communication to a low-energy-use doorbell is not necessarily going to work for a high-energy-use tumble dryer.

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CreatorUp Links You With Top Filmakers & YouTube Creators To Make Awesome Web Series

Tech Zulu Event

Aspiring creators learn by connecting with top web filmmakers and YouTubers on a topics specific to the web: developing a web series, producing web series, writing for genres like comedy & sci-fi, directing, editing, camera, Kickstarter funding, show hosting, distribution, and marketing.

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How ConsumerTrack Has Created A Growing, Profitable--and Mostly Unknown Business


We started looking at the landscape, and as I was getting my MBA at the time, ended up writing the business plan for ConsumerTrack.

Interview with Tim Cadogan, OpenX


We manage that competition through an aucton process. How is the competitive landscape is nowadays? If you look at the technology side, there are lots of different players on the supply side, even more on the data, and even more on the demand size.

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Bro Factor – Intimate Relationships Which Provide Your Startup With An Unfair Advantage


However, in the world of startups, relationships that go beyond a casual acquaintance can provide your adVenture with a significant competitive advantage. However, due to demand from his readership, Baum was forced to write him back into the adventure series. This is a reposting of a ‘classic’ popular post. Bro – abbreviation of “Brother&# , meaning friend or dude. A term of endearment used to denote a familiarity beyond a casual friendship.

Roping in the Legal Eagles


Just as you would not ask your family physician to perform a coronary bypass, do not ask your corporate lawyer to help you write your patent application. Some companies use lawsuits as an arrow in their competitive quiver. They demanded that we send them our entire customer list and that we issue a letter to all of our customers indicating that they were not to use our product in violation of the BDC’s licensing terms.

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Frank Addantes FounderBlog: Startup 5.0 – I’m just going to chill out for a bit… (OK, for a month…)

Frank Addante

Whatever the biggest, most challenging, most demanding, most important job we had at L90, I always turned to Tim. This was one of the largest, most demanding IT infrastructures ever built, and Tim conquered it; a guy, who less than 2 years prior, was hired to be our recruiter.