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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

I became a VC 12 years ago in 2007 when the pace of deals was much slower. As I was trying to figure out the role I wanted to play in the VC world I decided I wanted to focus on businesses that were building deeply technical products to solve problems for business users. Over the past 2.5 Why does that matter?

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This Week in VC: Michael Montgomery (President, Montgomery & Co.)

Both Sides of the Table

This episode of This Week in Venture Capital featured Michael Montgomery, president of Montgomery & Co. You have to be selected to present and it is typically reserved for companies that have already raised early-stage capital and are well into revenue growth. Should you use investment banks to raise venture capital?

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Top 120 Startup Posts for 2010

SoCal CTO

Steve Blank , January 25, 2010 10 Tips for Adding Game Mechanics to a Non-Gaming Service - ReadWriteStart , September 21, 2010 Startups & VCs: Learn How to Design, Market, & Eat Your Own. - First Principles.

Startup 378
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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. Why Shouldn’t Most Services Businesses Raise VC? You own the IP you create.

Services 332
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs.

Startup 383
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Some Career Advice for Aspiring Tech CEOs

Both Sides of the Table

He wants a chance at changing life’s circumstances with building equity value that might free him and his family from the rat-race of 529 accounts, property taxes, summer-school tuitions and even spending some cash on aging parents. I often tell people in this scenario to focus on a VC “fixer upper.”

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10 Finance Tips for Very Early-Stage Startups

Tech Zulu Event

We’re talking a skeleton crew of staff, minimal sales, and even less cash. Create a bottom-up financial forecast that uses your detailed budget and sales projections as the starting point. Managing working capital, mainly cash at this stage, is critical since liquidity is a huge concern. Establish a simple accounting system.

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