September, 2014

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Bad Notes on Venture Capital

Both Sides of the Table

'This week. On the phone … Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million. Me: Ah. I see. So you did raise with a price. It’s just a maximum price. You’ll find out the minimum when the next round is raised.

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Setting Kids Up to Fail

This is going to be BIG.

'The nature of work is changing--we all know that. You''re required to be a lot more entrepreneurial, which requires you to build your own networks in order to get customers and collaborators, since these functions won''t be under the roof of a big company anymore. You''ll need to be more mobile, nimble, and able to go where the work is. You''ll need to think globally.

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What are the most valuable recommendations in order to raise money from VCs connected via Gust?

Gust

'To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it. As such, the competition from an entrepreneur’s standpoint is very, very tough.

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How to be an angel investor, Part 3

Venture Hacks

This guest post is by Tyler Willis , an entrepreneur and angel investor. You can learn more about him on AngelList. For several interesting macro-economic reasons [1], more and more people are becoming angel investors. This is a good thing – it allows more investors to participate in a high-growth (but high-risk) area of our economy. That said, investing in private companies is very different from investing in public companies.

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15 Modern Use Cases for Enterprise Business Intelligence

Large enterprises face unique challenges in optimizing their Business Intelligence (BI) output due to the sheer scale and complexity of their operations. Unlike smaller organizations, where basic BI features and simple dashboards might suffice, enterprises must manage vast amounts of data from diverse sources. What are the top modern BI use cases for enterprise businesses to help you get a leg up on the competition?

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Here is my investment thesis. What’s yours?

Unvalidated Learnings

“Businesses that disrupt/create huge markets with a non-replicable product offering a must-have service , which gets better the more people use it.” Jean de la Rochebrochard ( @jlr ), a partner at TheFamily , recently published a very good piece on Medium titled “ Here’s my investment thesis. What’s yours? ”?—?below is my answer to his question. When thinking about investment thesis, one has to ask oneself: what is the outcome I am aiming at for the companies I invest in?

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Why We’re Looking to Fund Stuff With More Meaning

Both Sides of the Table

'Venture Capital is a tricky industry. If you’re funding the same stuff as everybody else and if you started your activities when the clues were obvious you’re much less likely to drive enormous returns. When Fred Wilson funded Twitter I guarantee you it wasn’t obvious that it was a billion dollar idea. Far from it. Many questioned whether it could survive under the fail whale, inevitable competition from Facebook, founder fighting, fights with 3rd-party developers let alone be

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Never ask for "Just 5 Minutes!"

This is going to be BIG.

'A few weeks ago, I was talking with a founder that I backed and he was telling me how excited he was about his company. He said the path was so clear that he could literally see it--and that''s the way he''s always been since I met him. He has a quiet confidence and he''s excited to talk about his company--and he could go on and on if you let him. It''s a stark contrast to people who beg for "just five minutes" of my time.

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Bad Notes on VC

Gust

'This week. On the phone …. Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million. Me: Ah. I see. So you did raise with a price. It’s just a maximum price. You’ll find out the minimum when the next round is raised.

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Startup Best Practices 9 - Structuring One on Ones to Maximize Your Team's Success

Tomasz Tunguz

The startups that build and retain the best teams develop a huge competitive advantage. It’s no surprise that managers are the most important influencers of team development and retention. The most frequent and consequently most powerful tool for managers to coach, develop and lead their teams are one-on-ones, weekly meetings between a manager and his or her individual reports.

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How Top Tech CFOs Solve Annual Planning’s Biggest Challenges

Gearing up for 2025 annual planning? Our latest eBook from the Operators Guild is your ultimate guide. Discover real-world solutions and best practices shared by top CFOs, drawn directly from discussions within OG’s vibrant online community. Learn from senior executives at high-growth tech startups as they outline financial planning strategies, align CEO and board goals, and coordinate budgets across departments.

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Fixed mindset vs Growth mindset

Derek Sivers

One of the most important concepts I’ve learned is the difference between the “fixed” mindset and the “growth” mindset. It’s a little bit like “nature vs nurture”: People in a fixed mindset believe you either are or aren’t good at something, based on your inherent nature, because it’s just who you are. People in a growth mindset believe anyone can be good at anything, because your abilities are entirely due to your actions.

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Embrace the right to pivot!

Berkonomics

'Plans don’t often work as devised. We are not always smart about the market or the product. Great teams are not bound by their original product or marketing plan. Greatness finds one definition in management’s ability to “pivot,” or change the plan in reaction to its early response from the marketplace. Investors celebrate teams that quickly find the flaws in the original plan and reallocate resources in another direction before more wasted effort.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

'I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. ” I highly recommend reading it. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

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25 Pieces of B t You Hear About Startups

This is going to be BIG.

'This list needs no explanation: 1) You need a technical co-founder. 2) We''re really interested in what you''re up to, but would love to see just a little more traction before we fund it. 3) No one else can do this. 4) We decided not to charge our initial customers. 5) It''s easier to get funded on the west coast. 6) This is projected to be a $54 billion dollar industry by 2019. 7) Google can''t do this. 8) We''re oversubscribed in this round. 9) We wouldn''t take $30 million if someone offered

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Your Fractional Finance and Accounting Team

Mighty Financial specializes in supporting the financial aspirations of small businesses and entrepreneurs. With our comprehensive bookkeeping and precise accounting expertise with decades of experience across diverse financial roles, our team offers tailor-made services ranging from essential bookkeeping to strategic fractional CFO support, catered specifically to the unique challenges of technology companies, startups, and SMEs.

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Every Entrepreneur Needs Help In Getting Things Done

Gust

'To Do List Chalkboard by Mufidah Kassalias, on Flickr. The universal challenge of every startup founder is to get everything done that needs to get done, and still have a life. Even outside of business, everyone wants to accomplish more, while working less. I’ve been a student of these techniques for some time, but some time ago I saw a great summary that seems to pull all the key principles together.

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Benchmarking Tableau's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we’ve looked at in the past have been purely SaaS businesses. Today, we’ll examine Tableau, the market leader for data visualization software.

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I love being wrong

Derek Sivers

Most of the time, I feel smart, successful, and driven — like I’ve got it all figured out. But last month a bunch of stuff knocked me on my ass. I’ve never felt so wrong. I vulnerably called on friends for help. They gave me a bunch of good advice, and helped me see things from a new point of view. Each different perspective made me feel good for a while.

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Use “switching costs” to your marketing advantage.

Berkonomics

'Know the cost to move from your existing platform, and estimate the switching costs for moving from a competitor’s product or service to yours. Offer incentives to existing customers to stay, and for competitor’s customers to switch. Protect your base with incentives to stay that are intangible – such as membership in an insider’s club, access to special deals not available to others, and attention from the executives at the top.

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Digitalization: 5 Tech Updates That Will Help You Survive The Recession & Thrive

Lack of digitalization decreases business competitiveness. To thrive, embracing modern solutions becomes essential. The approach to digitalization often aligns with a company's business model. This shift not only boosts productivity but also automates processes and improves security. The tech market offers a wealth of technologies tailored for management, planning, and forecasting, replacing outdated pen-and-paper methods.

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When VCs Play Defense

Both Sides of the Table

'Somehow the world seems to be spinning faster these days than just a few years ago. The frantic pace of technology cycles, the amount of tech news, the blogs, the conferences, the demo days, the announcements, the fundings, the IPOs. It’s exhausting. Perhaps unsustainable. It got me thinking about the advice that I often give to new VCs. For years I saw myself as the new guy in VC but then you wake up one day and realize that 50% of your peers have been doing it for less time than you and

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There is No Such Thing as a Great Team, Only Great Habits

This is going to be BIG.

'Sometimes, an investor gets lucky. They invest in a company with an idea that doesn''t go anywhere, the company pivots, and you wind up in the next big thing. In hindsight, an investor will tell you that they knew they had backed a great team and that was the key to the investment. It''s never luck. I have a lot of trouble with the "great team" scenario, because it just doesn''t seem to play out in real life.

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Great Startups Are Where Soul and Technology Meet

Gust

'MIT Chapel, Cambridge Mass via Wikipedia. Some entrepreneurs forget that they can’t use people the same way they use technology to build a startup. Inventors, for example, are skilled in manipulating technology, but may have little interest or experience engaging people to make an effective team. Unfortunately, startups are not one-man shows, so entrepreneurs need to study leadership as much as they study technology.

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Benchmarking Zendesk's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Zendesk is a 700 person company that builds customer support software. Zendesk went public earlier this year. It’s a remarkable business primarily because the founders and the team have built an incredibly efficient customer acquisition funnel.

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PE Mastery: CAPTARGET's Playbook for Quality Lead Flow

CAPTARGET presents a masterclass in M&A deal sourcing. Learn to cast a wide net, embracing seller self-identification. Consistency is the linchpin: keep the origination process steady for a reliable flow of opportunities. Diversify your tactics, employing various tools and vendors. Tech matters! Understand DNS settings, domain authority, and brand presence for optimal outreach.

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The Things that Will Break in My Lifetime

This is going to be BIG.

'The Cost of a College Education. I just looked up how much my alma mater costs in tuition. Fordham University, the 56th best college in the country, is now $44,000 a year. That''s a 6% annual increase since 1997 when I started and it was $16,000 a year. Take that forward to when my future kid might be going to school and you''re talking $141,000 a year tuition.

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Five Tips for Getting PR for Your Startup

This is going to be BIG.

'Because, you know, who doesn''t love a good startup list. 1) Figure out who has written about companies like yours and reach out--when you don''t need something. Think about who else is in your space--other wearables companies, companies also focused on the smart home, you name it. Those are going to be the reporters who are most likely willing to write about you.

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Apply Lessons Learned To Gain From Startup Failure

Gust

'Crossroads: Success or Failure by StockMonkeys.com, on Flickr. Your startup is gone, it’s never coming back, and you are in mourning. An entrepreneur whose business fails grieves similarly to anyone who has lost a loved one. The pain of losing a business is not only about a significant loss of income, but can send your entire identity into turmoil.

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Dread Startup Problems Or Learn To Enjoy Challenges

Gust

'Stressed entrepreneur photo via Wikipedia. If you can’t solve problems and enjoy it, you won’t make it as an entrepreneur. By definition, an entrepreneur is the first to undertake a given business, and firsts never happen without problems and people frustrations. The toughest problems are people problems, like personnel issues, but there are tough operational problems as well, such as vendor delays and quality surprises.

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How to Stay Competitive in the Evolving State of Martech

Marketing technology is essential for B2B marketers to stay competitive in a rapidly changing digital landscape — and with 53% of marketers experiencing legacy technology issues and limitations, they’re researching innovations to expand and refine their technology stacks. To help practitioners keep up with the rapidly evolving martech landscape, this special report will discuss: How practitioners are integrating technologies and systems to encourage information-sharing between departments and pr