Remove Funding Remove Pricing Remove Snapchat Remove Writing
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How Do I Feel About the Snap IPO Given I Didn’t Invest?

Both Sides of the Table

Every tech or major news journal in the country is preparing to write their Snap, Inc (creators of Snapchat, Spectacles, etc) stories and many of them seem to want a “How does it feel to have missed this investment story.” We did know about Snapchat as early as anybody. Another firm funded them. Mostly kidding.

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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. ” Stated simply – if you seed funded Uber at $4.5m Why is this?

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Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%). billion 2013 figure) have been massive financings at Honest Company ($70mm), JustFab ($85mm), ZipRecruiter ($63mm) and lord only knows how much SnapChat has actually accumulated.

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Should Startups Care About Profitability?

Both Sides of the Table

Or you know the other one — the one where Snapchat lost $2 billion in just one quarter. To grow faster businesses need resources in today to fund growth that may not come for 6 months to a year. They don’t want high burn rates but they will never fund slow growth. million to fund operations in their first year of operations.

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Why You Need to Ring the Freaking Cash Register

Both Sides of the Table

Because at least while the VC spigot is open and flowing for high-potential individuals that fit a pattern that some VCs seem to favor they can access cheap capital that isn’t terribly dilutive and can use the to fund development and swing for the fences with limited focus on monetization. Should I write off my $2.5

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When Should You Allow Exclusivity in Deals?

Both Sides of the Table

I must admit I discuss this very frequently with portfolio companies but hadn’t thought to write about it. If you’re negotiating with Samsung you can imagine they have Apple on their minds and if you’re negotiating with Twitter you can imagine they have eyes on Facebook, Google and even Snapchat.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. It pains me to see the typical (and predictable) responses on Twitter, “VCs want prices to drop!” ” “Sure, prices are dropping.

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