Startup Professionals Musings

OCTOBER 19, 2022

Yet as I mentor entrepreneurs around the country, crowdfunding still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge.

Funding 141

Funding Startup Outsource Development Satisfaction 141

Startup Professionals Musings

NOVEMBER 4, 2022

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. You need to have a technical genius on the team to get your startup product off the ground. The industry veteran.

Technical Advisors 123

Technical Advisors Startup Outsource Development High Tech 123

Startup Professionals Musings

JULY 1, 2022

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Startup 137

Startup Equity Pricing Marketing 137

Startup Professionals Musings

JANUARY 4, 2020

They know from forums such as Shark Tank on TV that asking for either too much or too little will derail credibility in the eyes of the investor, and leave the entrepreneur with no money and a struggling startup. If you have a good idea, but haven’t started yet, only friends, family and fools will likely be interested.

Startup 135

Startup Equity Invest Funding 135

Both Sides of the Table

AUGUST 30, 2010

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price).

Equity 319

Equity Pricing Venture Capital Entrepreneur 319

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354

Startup Pricing Equity Venture Capital 354

Startup Professionals Musings

MAY 1, 2021

I’m fully convinced that both inspiration and perspiration are always required in a startup. Those at the other extreme don’t look up from the grindstone long enough to notice whether all their work is producing sweat equity or just sweat. Starting a business may be fun, but it’s not easy. A business model that works.

Startup 160

Startup Patents Competition Social Network 160

Startup Professionals Musings

OCTOBER 16, 2023

Thus, financial projections for up to five years are a necessary element in every business plan. Per the words of an old country song, “if you don’t know where you’re going, you will probably end up somewhere else.” If you are losing money on every unit, it’s hard to make it up in volume. Forecast sales-volume expectations.

Startup 116

Startup Pricing Sales Statistics 116

socalTECH

AUGUST 8, 2012

San Diego-based Peregrine Semiconductor priced its IPO last night, saying that it will offer up 5,500,000 shares of its common stock at $14.00 The firm will start trading today on the NASDAQ Global Market as PSMI. Peregrine priced at the low end of its initial estimated pricing range, which was $14.00

Pricing 133

Pricing San Diego Startup Equity 133

Startup Professionals Musings

OCTOBER 7, 2022

They know from forums such as Shark Tank on TV that asking for either too much or too little will derail credibility in the eyes of the investor, and leave the entrepreneur with no money and a struggling startup. If you have a good idea, but haven’t started yet, only friends, family and fools will likely be interested.

Funding 121

Funding Startup Equity Invest 121

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk.

Startup 151

Startup Course Sales Entrepreneur 151

TechCrunch LA

SEPTEMBER 21, 2019

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy news pertaining to startups and venture capital. Before I jump into today’s topic, let’s catch up a bit. Last week, I profiled an e-commerce startup Part & Parcel. Startup Spotlight: Landline. IPO Update.

Services 207

Services Startup Venture Capital Redpoint 207

Startup Professionals Musings

JULY 14, 2023

Every existing business, as well as every startup, needs to reassess their product or service in the context of these five forces: Intensity of competitive rivalry. These plans just list a few key competitors out there now, compare feature richness, quality considerations, and pricing. Threat of new competitors entry.

Competition 88

Competition Startup Framework Pricing 88

Both Sides of the Table

MAY 23, 2010

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. a loan) that is later converted to equity at the time of the next financing.

Startup 290

Startup Funding Venture Capital Pricing 290

Both Sides of the Table

OCTOBER 22, 2009

This is part of my ongoing posts on Startup Advice. There are people who tell startups that they should hire the most senior people that they can find. Bringing in a senior person who’s “done it all before&# is often a mistake in a startup. So what if you’re already a mid-stage startup.

Startup 327

Startup Sales Class CIO 327

Both Sides of the Table

SEPTEMBER 8, 2012

I recently wrote about my views that startups rounds should be priced. Fred, who also wrote his views about convertible debt (significantly more succinctly than I) believes that the price of a single round should be the same for everybody. Price the round. You can do it with equity & a price.

Pricing 294

Pricing Venture Capital Writing Equity 294

Startup Professionals Musings

OCTOBER 24, 2020

Every existing business, as well as every startup, needs to reassess their product or service in the context of these five forces: Intensity of competitive rivalry. These plans just list a few key competitors out there now, compare feature richness, quality considerations, and pricing. Threat of new competitors entry.

Competition 151

Competition Startup Framework Pricing 151

Berkonomics

JANUARY 6, 2022

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. No-one complains if the sales price is ten times the investment since there is plenty to go around.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Startup Professionals Musings

SEPTEMBER 25, 2019

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Equity 94

Equity Startup Pricing Marketing 94

TechCrunch LA

DECEMBER 17, 2019

Today, one of the startups riding that wave is announcing a significant round of funding to fuel its own contribution to the marketplace. and globally to 25 markets by next year, up from 12 today. and globally to 25 markets by next year, up from 12 today. “We typically have 75%-78% occupancy,” Roberts said.

Equity 136

Equity Startup Los Angeles Capital 136

Startup Professionals Musings

APRIL 4, 2022

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Use crowd funding.

Tips 104

Tips Startup Technical Review Equity 104

TechCrunch LA

MAY 12, 2020

This morning, Snap joined a host of startup accelerators shifting its demo day online amid the COVID-19 quarantine. With its third class of startups, Yellow, Snap’s in-house startup accelerator that launched in 2018, brought investors and founders together in private slack channels after a live-streamed presentation.

Invest 237

Invest Startup Artificial Inteligence Class 237

Startup Professionals Musings

FEBRUARY 8, 2021

In my experience as an angel investor for new startups, I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. An experienced Board can give them credibility, as well as advice on the many pitfalls of starting a new company. The cost of a co-founder is usually fifty percent of your equity.

Startup 142

Startup Technical Review Equity Entrepreneur 142

SoCal CTO

JANUARY 5, 2011

Some really great stuff in 2010 that aims to help startups around product, technology, business models, etc. 500 Hats , February 1, 2010 When to Use Facebook Connect – Twitter Oauth – Google Friend Connect for Authentication? 500 Hats , February 1, 2010 When to Use Facebook Connect – Twitter Oauth – Google Friend Connect for Authentication?

Startup 378

Startup Venture Capital Blogging CTO Coach 378

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Use crowd funding.

Startup 87

Startup Technical Review Equity Incubator 87

Both Sides of the Table

OCTOBER 11, 2009

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. They are usually offered around 0.25% of the companies equity in exchange for their role and I’ve seen many companies hand out a total of 2% to advisers. If you plan to set one up – no problem. Not enough time.

Startup 306

Startup Venture Capital Equity Technical Review 306

TechCrunch LA

JANUARY 25, 2022

Now it’s picking up some funding along with an endorsement Europe to further its growth. The startup has received €50 million (just under $57 million at today’s rates) from the European Investment Bank, the funding arm of the European Union. People order Starship deliveries via the startup’s iOS and Android apps.

Invest 233

Invest Technology Startup Los Angeles 233

Both Sides of the Table

MARCH 31, 2012

Her post is short & well written so definitely worth a read if you’re a startup person and want to hear some sensible views on sales. My list of excuses includes: product, pricing, competition and lack of sales support. However, I advocate a more nuanced approach for early-stage startup teams” 1.

Startup 319

Startup Sales Course Competition 319

TechCrunch LA

MAY 20, 2021

One startup that aims to help make the process simpler, cheaper and less stressful by helping people manage the home renovation process has raised $6 million to help it grow even faster. Construction tech startups are poised to shake up a $1.3-trillion-dollar Renovating a home is an exciting, yet often fraught-filled, endeavor.

Technical Review 185

Technical Review Startup Venture Capital Software Review 185

Berkonomics

MAY 12, 2010

Equity is divided between the founders and the business begun. Each grant to new or existing employees must be approved by the board before issue. The price per share for option grants is also an important consideration. a share, then options must be priced at that amount.

Equity 213

Equity Class Pricing Startup 213

socalTECH

MAY 24, 2021

Los Angeles-based ProducePay, a fintech startup which offers up pricing information, analytics, and a marketplace connecting produce growers and distributors, has raised $43M in its Series C funding. The company says the new round brings its total raised to over $300M, including both equity and debt.

Pricing 113

Pricing Equity Los Angeles Capital 113

Both Sides of the Table

SEPTEMBER 23, 2010

They might not actively “collude&# and say “let’s collectively keep the price down&# but in the resulting discussion pricing information will flow – whether intentional or not. They’re not in search of price fixing or collusion, they’re in search of diligence information about the company.

Pricing 292

Pricing Entrepreneur Technical Review Venture Capital 292

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Most are sitting on large portfolios of private companies that are raising money now or will need to do so in the future and they know that they’re up against some headwinds.

Startup 150

Startup Company Companies Venture Capital 150

Both Sides of the Table

JULY 11, 2010

I recently wrote a blog post about why I believe that startup teams in close proximity perform better. We know prices of deals, compensation, who’s doing well / poorly, etc. I guess I shouldn’t be surprised – I got a similar lukewarm reaction when we started Launchpad LA and that seems to be going pretty well.

Startup 285

Startup Venture Capital Incubator Entrepreneur 285

Both Sides of the Table

FEBRUARY 23, 2010

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. By all means light up my comments sections with any cases you believe where this advice doesn’t apply.

Startup 293

Startup Sales Marketing Product 293

Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. That might start with the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone.

Technical Review 118

Technical Review Startup Satisfaction Invest 118

Both Sides of the Table

SEPTEMBER 18, 2014

Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. Him: But when I raised my first round we didn’t know how to price the company. How will you price the next round? That way you don’t have a max or min price but you have a price.

Venture Capital 417

Venture Capital Capital Pricing Doc 417