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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

For a high-volume seed fund that adds many portfolio companies every year (such as our friends at 500 Startups who invest in over 100 distinct companies annually), the cost of a bad affirmative decision (a false positive) is quite low, since it accounts for a relatively small portion of their total fund. It's Me, Not You.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

As I have pointed out in previous posts , 91% of VCs surveyed believe prices are declining (30% believe substantially) and 77% believe that funding will take longer than it has in the past. I’m surprised how few entrepreneurs have this open conversation with their investors. Wouldn’t you rather know where you stand?

Startup 150
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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

I had seen many cycles and decided that since I was going to do it all over again I should write about it. I decided to write about my experience and to be blunt. It became a huge kerfuffle with many VC partners writing to thank me for the post, which exposed those that gave their industry a bad name. And covered we did.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.

Startup 383
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Angel Funding Advice

Both Sides of the Table

I’m a software guy so I’m sure there are cases where building isn’t feasible. In most cases if you can’t get a prototype done you’re probably not an entrepreneur. The key to getting money is that the people writing the check trust you. Surround yourself with great advisors or other entrepreneurs.

Angel 291
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The Long-Term Value of Loyalty

Both Sides of the Table

No rule is ever absolute no matter how it sounds when one writes a blog. But in these years I learned how to sell software – necessity is the mother of all invention. But in our first year of sales (and those were really shitty years to be selling software) we sold $2.1 They come in the form of personal references.

Startup 285
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Top 30 Startup Posts for July 2010

SoCal CTO

5 Lessons from 150 startup pitches - A Smart Bear: Startups and Marketing for Geeks , July 11, 2010 I just reviewed several hundred startup pitches for Capital Factory. Wannabe entrepreneur symptoms and cures - Gabriel Weinberg , July 25, 2010 I was once a wannabe entrepreneur. You're probably making a lot of these errors too.

Startup 217