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

TechEmpower

AUGUST 7, 2023

Increasing competitive advantage? Getting something to market and getting funding override any other concerns. It’s just not a realistic expectation. More on the Role of the Startup CTO Eric Ries, a great resource, answers the question What Does a Startup CTO actually do? Exploring new technologies?

CTO Hire 260

CTO Hire Develop Development Fractional VPE 260

Both Sides of the Table

JULY 21, 2014

Since 2009 we’ve been in an unequivocal bull market. An impressive number of new VCs have been created – most of them with new seed funds. And as I always assert, “Great companies are built in downturns. Growth markets have a way of fooling us all. Have they done a business case on the expected benefits?

Marketing 354

Marketing Case Study Metrics Sales 354

Both Sides of the Table

SEPTEMBER 15, 2014

If you’re funding the same stuff as everybody else and if you started your activities when the clues were obvious you’re much less likely to drive enormous returns. When Fred Wilson funded Twitter I guarantee you it wasn’t obvious that it was a billion dollar idea. Venture Capital is a tricky industry. Far from it.

Funding 362

Funding Technical Review Ideas Startup 362

Startup Professionals Musings

MARCH 3, 2023

Most technical entrepreneurs I know demand the discipline of a product specification or plan, and then assume that their great product will drive a great business. Here are the major elements of the best product plans: Market requirements section. Opportunity segmentation and competitive environment.

Product 112

Product Summary Activity Entrepreneur 112

Both Sides of the Table

SEPTEMBER 1, 2016

Rolf Winkler wrote a piece in the WSJ about A16Z’s returns in which he says they “lag behind Sequoia, Benchmark and Founders Fund.” Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds.

Venture Capital 264

Venture Capital Invest Funding Competition 264

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. …But LPs Have Been Putting Out More Money Than They Are Getting Back. That’s money that fuels our startup ecosystems.

Venture Capital 150

Venture Capital Capital Marketing Seed Funding 150

Both Sides of the Table

JULY 23, 2014

The rise of “micro VCs” or seed-stage funds. 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. On the surface the narratives have been.

Venture Capital 398

Venture Capital Technical Review Startup Seed Funding 398

Both Sides of the Table

MAY 30, 2018

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. Call this “price signaling.”

Venture Capital 324

Venture Capital Pricing Startup Invest 324

Startup Professionals Musings

OCTOBER 1, 2022

It takes a wealth of hungry buyers to sustain a great business idea. A great innovation starts with at least three ideas. I recommend that you always use brainstorming, or expert feedback, to define similar approaches and markets, before proceeding to produce and sell a solution that may be expensive to change later.

Ideas 145

Ideas Startup Case Study Writing 145

Startup Professionals Musings

NOVEMBER 2, 2022

Many risks can be managed or calculated to improve growth or provide a competitive edge, while others, like skipping quality checks to save money, are recipes for failure. If the customer need is obvious and large, the calculated risk is in the quality of your solution, your team, and marketing. In reality, all risks are not the same.

Resource 121

Resource Metrics Entrepreneur Customer 121

Startup Professionals Musings

JULY 23, 2023

Great ideas solve big problems, preferably painful needs that people will readily be willing to pay money for a solution. Will the solution give you an “unfair competitive advantage,” meaning no competitor already has it, or can replicate your solution without your skills or intellectual property. Is the opportunity large and growing?

Startup 96

Startup Education Ideas Customer 96

Startup Professionals Musings

OCTOBER 31, 2022

After many years in business, I’m convinced that none of us has the strengths and interest in all the areas needed for success, including solution changes, finance, marketing, and operations. Idea people often don’t get funded as entrepreneurs, because a new business is all about results, not just ideas.

Activity 108

Activity Satisfaction Metrics Startup 108

Startup Professionals Musings

JULY 2, 2022

As an active angel investor, I still hear entrepreneurs asserting large opportunities with minimal risk and no competition. My conclusion either way is that they have no market, or haven’t looked. First you need to assess the risks and value of investor funding and carrying debt. Embrace the risk of proactive marketing.

Entrepreneur 153

Entrepreneur Marketing Customer Custom 153

Startup Professionals Musings

OCTOBER 29, 2022

Here are six results that you can achieve by building a prototype, which are really the reasons that investors and partners will give you a whole new level of credibility as they evaluate your startup for potential funding: Something you can touch and feel helps validate opportunity. Quantify the implementation challenges.

Outsource Development 110

Outsource Development Ideas Tool Outsource 110

Startup Professionals Musings

MAY 31, 2020

Most technical entrepreneurs I know demand the discipline of a product specification or plan, and then assume that their great product will drive a great business. Here are the major elements of the best product plans: Market requirements section. Opportunity segmentation and competitive environment.

Entrepreneur 124

Entrepreneur Startup Summary Product 124

Startup Professionals Musings

JULY 27, 2020

A question I get from time to time is “Can I ever expect any backing from my bank for a great opportunity?” You have to get past how great the product is to address clearly what your business rationale is, why it is different from the competition's, and why it will succeed. Be concise as well as complete.

Technical Advisors 162

Technical Advisors Tips Startup Equity 162

InfoChachkie

JULY 14, 2011

Value Prop Twitter Style : “Ringrevenue’s call performance marketing platform enables ad networks, agencies, advertisers & publishers to generate more inbound sales calls.”. In today’s market, so much focus is placed on transacting business online. Why aren’t there a half-dozen well-funded startups running up your tailpipe?

Marketing 209

Marketing Advertising Paid Search Startup 209

Startup Professionals Musings

SEPTEMBER 30, 2013

Every investor expects to see some business traction, both before and after a funding event. I hear a lot of entrepreneurs contemplating their great “idea” for several years with little discernable progress, and looking for money to start. A great business often starts with one person, but it doesn’t end there.

Funding 112

Funding Entrepreneur Startup CTO Hire 112

Startup Professionals Musings

NOVEMBER 4, 2020

Great ideas solve big problems, preferably painful needs that people will readily be willing to pay money for a solution. Will the solution give you an “unfair competitive advantage,” meaning no competitor already has it, or can replicate your solution without your skills or intellectual property. Is the opportunity large and growing?

Startup 166

Startup Education Ideas Customer 166

Startup Professionals Musings

AUGUST 23, 2021

You need complementary skills for marketing, financials, and operations. Bootstrapping is always a great alternative, since you can retain full ownership and make all your own decisions. We all have strengths and weaknesses, and are driven by different values and expectations. A business is never a solo operation.

Startup 159

Startup Satisfaction Entrepreneur Equity 159

Startup Professionals Musings

JULY 2, 2013

Thus when an investor declines your funding request, you need to curb your anger and understand the real reason for this outcome. In my experience, here are the most common issues that cause funding requests for potentially viable businesses to be rejected, in priority order: Inadequate business plan. More rules of thumb.

Startup 97

Startup Funding Entrepreneur IBM 97

Startup Professionals Musings

FEBRUARY 8, 2020

Many risks can be managed or calculated to improve growth or provide a competitive edge, while others, like skipping quality checks to save money, are recipes for failure. If the customer need is obvious and large, the calculated risk is in the quality of your solution, your team, and marketing. In reality, all risks are not the same.

Entrepreneur 129

Entrepreneur Resource Metrics Customer 129

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I can’t control the market. Private markets for stocks are the opposite.

Startup 336

Startup Pricing Technical Review Marketing 336

Startup Professionals Musings

NOVEMBER 21, 2016

They expect to hear about founders and team member’s prior experience in building a startup, and knowledge in the relevant solution domain. Target market sizing higher than $10 billion. Sales projections are less than one percent market penetration. Investors are wary of crowded markets, and untapped markets.

Funding 98

Funding Startup Innocal Entrepreneur 98

Startup Professionals Musings

MARCH 6, 2023

Great entrepreneurs strive to understand the depth of a customer need, rather than just the ability to recite a longer list of features. Technologies are not solutions, but understanding a technology, in the context of a customer need, will result in more competitive and long-lasting solutions.

Social Media 120

Social Media Startup Entrepreneur Education 120

Startup Professionals Musings

JUNE 26, 2015

As a model, think high-quality marketing collateral, with text and graphics in columns and sidebars, but focused on the value of your business, rather than selling your product. Skip the fuzzy marketing terms, such as "easier to use," "lower cost" and "disruptive technology."

Summary 101

Summary Patents Technical Review Competition 101

Startup Professionals Musings

APRIL 25, 2016

If you expect an equity investment from reputable investors for your new startup, you need to know the boundaries that often limit their interest. If you have a great social cause, perhaps you should be looking for philanthropists instead of investors. Secret sauce' or competitive advantage is not clear.

Funding 57

Funding Social Media Startup Patents 57

Startup Professionals Musings

FEBRUARY 2, 2020

Here are six results that you can achieve by building a prototype, which are really the reasons that investors and partners will give you a whole new level of credibility as they evaluate your startup for potential funding: Something you can touch and feel helps validate opportunity. Quantify the implementation challenges.

Outsource Development 124

Outsource Development Ideas Tool Outsource 124

Both Sides of the Table

JANUARY 8, 2014

VC firm policy or fund analysis. I think it’s great for some people because it really does give you some solid benefits: board exposure / experience. a top-down view on HR challenges at startups; and, obviously: a great network. a top-down view on HR challenges at startups; and, obviously: a great network.

Help 365

Help Invest Venture Capital Technical Review 365

Both Sides of the Table

FEBRUARY 17, 2011

A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. When times are really good for fund raising many teams delay to maximize their valuation. Sometimes this pays off, other times it doesn’t. How long is the window open?

Help 303

Help Startup Competition Framework 303

socalTECH

APRIL 1, 2019

The hypothesis was, companies are in an extremely competitive environment, and it doesn't matter what company or industry they are in, it's been one of the most competitive environments we've seen in a long time. That competitiveness is driving companies to make better decisions. We've had lots of success there.

Startup 113

Startup Culver City Competition Customer 113

Startup Professionals Musings

AUGUST 7, 2015

These don’t get funded, nor bought by customers. Here are the motivation elements that investors expect to hear: Size and growth potential of the market opportunity. Your customers don’t care if you are targeting a billion-dollar market and growing at double-digit rates, but investors will skip small or shrinking opportunities.

Product 103

Product Slides Customer Custom 103

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. What accelerated this was the collapse of the public stock markets.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Startup Professionals Musings

JANUARY 16, 2019

Yet I find that only a few are able to put their passion aside for a moment, and compare their solution to the attributes that really attract a large market of new customers. Customers will remember you and your brand for starting with a point of excellence, but they expect that to broaden as their needs and confidence in you grows.

Startup 91

Startup Customer Custom Examples 91

Both Sides of the Table

JUNE 22, 2011

He said, “They need an unbiased view of the fund raising environment because there is too much misinformation and everything seems to be changing fast.&#. They have seen one side of a market where many of us have seen the ebb and flow multiple times. Still, market amnesia by ordinarily rational actors always surprises me.

Pricing 309

Pricing Marketing Startup Venture Capital 309

Startup Professionals Musings

JULY 27, 2018

Unfortunately, customers look for value in solving their problem, and new technologies alone scare them, so these solutions don’t get bought by customers, or funded. In reality, there isn’t much overlap between the business pitch I expect, versus a product pitch. Intellectual property and sustainable competitive advantage.

Product 58

Product Slides Entrepreneur Invest 58