Both Sides of the Table

OCTOBER 22, 2009

I believe that you should always hire people are are looking to “punch above their weight class,&# which means to hire people who want to be one league above where they are today. I’m a big believer in only hiring A+ team members. I’m talking about what most of you are tempted to do. Your solution?

Startup 327

Startup Sales Class CIO 327

Both Sides of the Table

SEPTEMBER 8, 2012

If you do an uncapped note it’s bad for the investor. If you do a capped note it’s bad for the entrepreneur. 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. You can do it with equity & a price.

Pricing 294

Pricing Venture Capital Writing Equity 294

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

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. I just want to state that up front because while I believe that this post will apply to most startup technology companies out there, I’m sure there will be exceptions. You decide to go out and hire a sales rep.

Startup 293

Startup Sales Marketing Product 293

Both Sides of the Table

NOVEMBER 19, 2009

In case it’s not obvious it’s a play on the Nike slogan, “Just Do It.&# ) I believe that being successful as an entrepreneur requires you to get lots of things done. Good entrepreneurs have a penchant for doing vs. over-analyzing. Your head of sales thinks she should fire somebody.

Entrepreneur 414

Entrepreneur Technical Review Slides CTO Coach 414

Both Sides of the Table

DECEMBER 3, 2013

” How can businesses not incorporate information into their marketing and sales funnels? Some startups I talk with mistakenly believe you can poll the Twitter API directly to get the feed but the Twitter API isn’t full fidelity, doesn’t have the full historical data corpus and isn’t real time. Asymmetric.

Social Media 358

Social Media Yammer Invest Organization 358

Both Sides of the Table

SEPTEMBER 28, 2014

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. At a minimum I encourage you to spend some time preparing for that question, which phrased another way is, “What do you plan to do with $6-8 million when you raise it.”

Startup 383

Startup Company Companies .Net 383

socalTECH

OCTOBER 2, 2012

One of the few local funds to recently raise a fund is TVC Capital (www.tvccapital.com), which just closed TVC Capital II, a $75 million growth equity and buyout fund. Jeb Spencer: We consider ourselves a private equity firm. One issue has been a difficulty by indigenous funds to raise their own capital from their limited partners.

Acquisition 168

Acquisition Software Review Technical Review Equity 168

InfoChachkie

JULY 11, 2011

By combining our equity investment with a tranche of venture debt, the company has avoided a larger equity round, which would have significantly diluted the Founders’ ownership share. Dollar Blend – Many venture debt lenders require that their funds be accompanied by an equity investment, generally from legitimate venture capitalists.

Equity 235

Equity Startup Invest Funding 235

Both Sides of the Table

JANUARY 1, 2016

Those who know how to lead are those who have an easier time doing all the things that feel like such a struggle. Those who know how to lead are those who have an easier time doing all the things that feel like such a struggle. We can be blunt but we believe that builds healthier relationships. A Sense of Purpose.

Startup 150

Startup Coach Course Invest 150

Both Sides of the Table

MARCH 21, 2010

I’ve heard the following so many times that it still makes me scratch my head, “if those guys are going to get rich off of our backs then we’re going to look like fools if we don’t have equity.&#. I’ve already made clear that I think raising equity from “strategic money&# is an oxymoron.

Startup 298

Startup Sales Slides Metrics 298

Both Sides of the Table

FEBRUARY 24, 2019

This post sets out how I believe founders (and investors) should think about independent board members having worked with many of them for the past 20 years. When an entrepreneur takes on investors who take equity (i.e. When an entrepreneur takes on investors who take equity (i.e.

Startup 187

Startup Writing Venture Capital Oracle 187

Both Sides of the Table

JANUARY 4, 2014

– while the other might want a quick sale and pocket some bucks while the tech market is hot. At the risk of sounding like a broken record, it’s why I believe executive coaches are so important for startups who have the financial resources to afford them. Equity for the future? Those are the easy cases.

Startup 340

Startup Technical Review Course Press 340

Both Sides of the Table

MARCH 3, 2013

It’s not that I don’t believe in liberal arts, humanities and the like. I believe, though, that they need to be taught more in the context of helping people develop meaningful careers that position them to succeed financially in the changing world in which we live. I don’t believe it. Venture Capital.

Venture Capital 403

Venture Capital Education Offshore Outsource Development 403

Both Sides of the Table

OCTOBER 11, 2009

So do advisory boards really add value? And if you decide to have one how do you best implement it? 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. Not enough time. Most of the people you want to ask are busy.

Startup 306

Startup Venture Capital Equity Technical Review 306

Both Sides of the Table

NOVEMBER 11, 2013

I often advise startup companies not to try and pin all of your brand equity into an announcement. And as a result I thought it was a good time to reflect on how we were doing with our own brand relaunch. I couldn’t believe the quality intro.” A brand is a marathon, not a sprint. Naturally they asked, “why?”

Venture Capital 324

Venture Capital Startup Blogging Platform 324

Both Sides of the Table

APRIL 14, 2012

…” I’ll write soon on my views of why I believe Instagram took off as a social network and what I think comes next. You are either bought for stock or for equity. ” No, I said you’d have to be really freaking awesome for them to do so. I believe Instagram was. But they are SO FREAKING SLOW.

Venture Capital 316

Venture Capital Pricing Social Network Acquisition 316

InfoChachkie

JUNE 4, 2012

As an entrepreneur, I helped create companies which achieved two IPOs and two trade sales totaling $385 million. Public relations at a startup is a sales process. Rationale: I am busy and do not have time to accomplish all of my mission-critical tasks. You can’t live long enough to make them all yourself.”.

Entrepreneur 272

Entrepreneur Outsource Ideas Technical Review 272

InfoChachkie

DECEMBER 5, 2011

Although cash is a convenient measure of success, most entrepreneurs do not consider money to be success, unto itself. Rather, "Money is a scoreboard where you can rank how you’re doing against other people." "Sweat equity is the most valuable equity there is. Love what you do or don’t do it."

Tips 274

Tips Startup Entrepreneur Ideas 274

InfoChachkie

MAY 16, 2011

1) Expect Independent Channel Sales Reps To Perform Missionary Sales. Rationale: I cannot afford to hire a direct sales force. Fallacy: Third-party, OEM (Original Equipment Manufacturing) representatives succeed once the sales process is defined, proven and documented. Public relations at a startup is a sales process.

Startup 242

Startup Outsource Development Outsource Sales 242

socalTECH

JANUARY 22, 2013

Last week, Carpinteria-based Lynda.com announced one of the biggest investments in the region in the last few years--a $103M, growth equity investment in the company, which came from Accel Partners and Spectrum Equity. We also have sales offices in the UK and in Australia. How many employees do you have now at the company?

Funding 164

Funding Calabasas Course Platform 164

socalTECH

JANUARY 22, 2013

Last week, Carpinteria-based Lynda.com announced one of the biggest investments in the region in the last few years--a $103M, growth equity investment in the company, which came from Accel Partners and Spectrum Equity. We also have sales offices in the UK and in Australia. How many employees do you have now at the company?

Funding 164

Funding Calabasas Course Platform 164

Berkonomics

AUGUST 27, 2015

The Flipper’s executives usually have significant equity holdings, either actually owned or reflected in stock options. Creating brand is or should be a major focus for companies in industries where positive and immediate customer prospect recognition results in sales.

Entrepreneur 120

Entrepreneur Equity Competition Pricing 120

Both Sides of the Table

APRIL 19, 2011

o Their strong skill was online media buying and optimization – they rarely would do CPA deals – mostly buying CPM. o Their strong skill was online media buying and optimization – they rarely would do CPA deals – mostly buying CPM. Once he got connected to CMO of Coca Cola which said to him “people do not want to lower their bills!!!”

Acquisition 304

Acquisition Startup Customer Custom 304

Both Sides of the Table

JANUARY 31, 2011

One of the most common questions that entrepreneurs who meet me for the first time like to ask is, “Do you miss being an entrepreneur? Aren’t you ever tempted to go back and do it again?”. Even many successful entrepreneurs tell me that they’d prefer to do a buy-out the next time rather than go back to square one in a startup.

Entrepreneur 384

Entrepreneur Startup Venture Capital Ideas 384

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. And as Rob points out – if you email members with short updates more frequently they are more up to speed when you do need them to weigh in. Rob does it.

Tips 365

Tips Email Venture Capital CTO Coach 365

Both Sides of the Table

NOVEMBER 8, 2010

I have always loved watching videos there but always believed that any company controlled by a consortia of interests would be doomed in the long run – especially by established, large incumbents with an interest in protecting the past more than innovating the future. So what does this have to do with OPEC?

Hulu 292

Hulu Technical Review Content Advertising 292

socalTECH

MARCH 10, 2010

Robin Richards: After selling Notification Technology to Blackboard, we kind of sat around and said--where is there a marketplace, that can do some good, really needs to be developed using technology, and where there is no major player involved. But, what about the supply side, and where do companies go? We believe in that.

Startup 223

Startup Content Sites CTO Coach 223

Startup Professionals Musings

JUNE 25, 2012

Don’t believe the urban myth that you can sketch your idea on a napkin, and professional investors will throw money at you. Self-funding is the preferred source of cash for your startup – if you can do it. It’s not a quick solution, but state and federal funding agencies do not want ownership or interest payments from your company.

Technical Review 103

Technical Review Equity Incubator Venture Capital 103

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. VC will shrink.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Startup Professionals Musings

NOVEMBER 21, 2016

Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. Sales projections are less than one percent market penetration. Sleeping giants do wake up. Many naïve startup founders believe that they can make good money with low margins. Skip the hype.

Funding 98

Funding Startup Innocal Entrepreneur 98

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. But I don’t have money to pay a fancy lawyer – I’ll just have my cousin do it - Don’t. I know he’s smart but you wouldn’t hire a Javascript developer to do your database design – would you?

Startup 318

Startup IP Southern California Entrepreneur 318

Both Sides of the Table

MARCH 2, 2011

Mostly during the day I’m in meetings or doing work. I was thinking back to a few previous “insider baseball&# blog debates that raged for several weeks: AngelGate (aka Bin38 secret cabal), convertible debt vs. equity, bubble vs. not, and now the AngelList discussion. Are these signal or noise? Examples: Bin38. Same thing.

Email 287

Email Blogging Venture Capital Writing 287

Both Sides of the Table

FEBRUARY 23, 2015

Even when you do sign-up initial customers it’s still not clear that your company will be a success and you’re still likely paying yourself under market rates. .” They own a fixer-upper in an outskirt neighborhood in the wrong school district but they’ll make do. He still has the dream. He has the hunger.

Technical Review 150

Technical Review Startup Venture Capital IP 150

Both Sides of the Table

AUGUST 9, 2011

I started showing my partners more deals that I found interesting and doing loads of analysis on the future of markets I thought were ripe for disruption. I have always believed that TV was ripe for disruption. By 2008 I had gotten more serious about championing companies through our investment process. tl;dr summary. Summary version?

Marketing 305

Marketing Venture Capital Funding Technical Review 305

Both Sides of the Table

MARCH 17, 2010

We tend to do more $3 million “A&# rounds and we look for companies that have an early monetization strategy. Side note: LA seems to have had some success in mega deals led by private equity firms as evidenced by DemandMedia and Chris DeWolf’s latest company backed by more than $20 million in private equity.

Company 290

Company Companies Technology Startup 290

Startup Professionals Musings

JANUARY 4, 2016

Most first-time entrepreneurs seem to believe the myth that they need a minimum of a half a million dollars to start a business. Find team members to work for equity rather than cash. Equity is your best assurance of commitment and focus. Practice your sales skills early. I’m convinced this also reduces risk.

Startup 61

Startup Social Media Entrepreneur Equity 61