May, 2012

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To Be Successful You’ll Need to Shake Hands and Kiss Babies.

Both Sides of the Table

It’s Wednesday late afternoon. I’m aboard Delta flight 1833 from Cincinnati (actually, Northern Kentucky for what it’s worth) to Los Angeles. I had a very enjoyable day in Cincinnati meeting many local entrepreneurs, angels and accelerators. I was here to see one of our LPs (limited partners are the people who invest money in VC funds) called Fort Washington.

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How VCs, Accelerators, and Coworking Spaces Put Communities in Buildings vs. Buildings in Communities

This is going to be BIG.

I'll bet you don't know where the Center of NY's Tech Community and Center of Creativity is. Give up? It's in the Financial District--right at 55 Broad Street. It says so right on their website. In fact, it is "well-known internationally as the original home of New York's technology community.". I'll bet you didn't know that--mostly because it never was.

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8 Attributes of a Real Entrepreneur That Run Deep

Gust

Business success begins in the mind of the startup founder and his team. A winning startup is a team of entrepreneurs who build and run the business as an extension of who they are, rather than some extrapolation of the Google or Facebook model. It’s not so easy to fake the important attributes when the going gets rough. So before you risk it all by jumping into a startup, do a reality check on your own mind to see if you can find a majority of the following attributes, summarized from the book

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Why Churn is SO critical to success in SaaS

For Entrepreneurs

Summary: Illustrates graphically why churn is a huge problem a SaaS company gets larger. It also looks at a very surprising factor that can massively accelerate SaaS growth: negative churn. (This article is applicable to any recurring revenue business, not just SaaS.) Introduction As a SaaS company becomes larger, the size of the subscription base [.].

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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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Really do think outside the box.

Berkonomics

Creative entrepreneurs find niches for their business that are not full of competitors fighting over the last dollar of margin, or niches that are mature and shrinking in size. They search for areas unexplored, or those covered by companies with less of a vision for quality, service or innovation. But even creative entrepreneurs are often trapped inside the box of their experience.

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It’s Morning in Venture Capital

Both Sides of the Table

This article originally ran on PEHub. If you prefer the super short version – I’ve summarized the post in the final section. Many observers of the venture capital industry have questioned whether its best days are behind it. They are frustrated by the past decade of subpar returns for the sector. The most recent report to weigh in on the troubles of the industry was produced by the esteemed Kauffman Foundation.

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In Which We Pay Attention to Something Else

This is going to be BIG.

I'm watching CNBC right now and they're featuring two top stories: Facebook's 30% drop since the IPO and SpaceX completing the first commercial space supply mission. Could it be that the future of innovation lies in driving mankind forward and not getting people to click more ads? Does the Facebook IPO mark the end of our eight year infatuation with social networking that began with Flickr and del.icio.us?

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10 Things I Look for When Reading a Business Plan

Gust

It’s the end of May as I write this so I’ve just finished my annual April-May business plan marathon reading more than 100 business plans for my angel investment group and four different business plan contests. This seems like a good point to summarize here what I look for in a business plan. . Don’t push adjectives. Let me assign my own.

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Smart people don’t think others are stupid

Derek Sivers

The woman seemed to be making some pretty good points until she stopped with, “Ugh! Those people are just so stupid!!”. She could have said Southerners, Northerners, Liberals, Conservatives, Chinese, or Americans. It doesn’t matter. She just proved that she wasn’t being smart. There are no smart people or stupid people, just people being smart or being stupid.

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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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The four “P’s” of Building a Great Business.

Berkonomics

Some of us remember things better when given a catchy phrase or rhyme. Here’s one to help you with squeezing the most out of your available resources. It reflects the new reality in our business world, one with little room for mistakes and no room for bloat within our companies. The first “P” stands for people. The wrong person in a job causes all below or above that person in the production system, that depend upon that person, to operate at a reduced rate or quality of output.

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The Screwy Logic of Crowdfunding and Venture Fund Regulation

This is going to be BIG.

Fact: Thanks to the new crowdfunding legislation, it will soon be easier for any entrepreneur trying to build Instagram for Cats to raise $10 million than it is for an experienced investor to raise a fund to invest in the next 25 new businesses as well as support their growth with strategic advice, help with hiring, PR, business development, and connections to future capital.

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Thinking About Berlin: Unleashing a Creative Opportunity

This is going to be BIG.

On Saturday morning, I stepped onto continental Europe for the first time in just over 20 years. I hadn't been here since I was 12, when I did a week long exchange program in Italy. I'll admit to not being particularly well travelled--I've never lived outside the five boroughs. I don't know any other languages. It's not that I don't like new places--I've just spent a lot of time diving pretty deep into my own city and going all in on a career based off of being rooted in NYC.

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5 Tips for New Angel Investors

This is going to be BIG.

Now that Facebook has gone public, there's a lot of newly created wealth on the scene. History has shown that newly creates wealth shops the startup scene like a kid in a candy store. Over the course of the lifetime of a new angel investor, they'll do 70% of all of the angel investments they'll ever make in year one. Then they realize that some of these companies will hit a wall, demand a lot of time, and that it's all fun and games until someone gets an eye poked out--or so the saying goes.

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Your Fractional Finance and Accounting Team

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What to blog about when you have nothing to say

This is going to be BIG.

1. Comment on a series of posts other professionals in your area of expertise seem to be talking about. 2. Read something in a totally different genre like philosophy or history and try and put it in the context of your job. 3. Blog some rhetorical questions that are on your mind. 4. Ask 4-5 smart people for a tip or best practice around something everyone in your area needs to know. 5.

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A framework to think about pricing seed, angel, and venture capital rounds

This is going to be BIG.

How do you price a round? Its one of the most often asked questions and yet I've never seen a great answer given. It seems to me that the most important factor in pricing your round isn't your progress or your idea. It seems to come down to two things: 1) How much do you want to raise? 2) Supply and demand of capital willing to invest in your company.

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What the Facebook IPO means: 10 things

This is going to be BIG.

1) Expect the angel and seed stage market to continue to stay hot. Newly wealthy Facebookers will likely contribute massively to early stage companies, which means building relationships with companies early and actually rolling up sleeves to add value will be a must for investors. If you're just money, you are toast. 2) Facebook will be hungry for growth in its ad business, and since it is running out of internet connected humans to connect to, it will need tools to make more out of each person

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First Round Capital is a Firm with No Principals

This is going to be BIG.

It's true. With the ascension of Kent Goldman and Phin Barnes to Partner, Christine Herron leaving to join Intel Capital and me starting Brooklyn Bridge Ventures , there are no longer any people at the Principal level. Oh, did you think I meant something else? :) I just thought today was Salacious Headline Day in the VC blogging world so I thought I'd chime in.

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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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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Dual-class voting structures are receiving a lot of attention these days along with intense publicity related to the Facebook IPO , following in the wake of other recent tech IPOs with a similar structure such as Zynga and LinkedIn. This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004.

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Reflection on Local Angel Investment From Inside Out

Gust

This is a good time to reflect on my experience with locally based angel investment. I just finished with the fourth of our annual angel investment event for my local group based in Eugene and Corvallis, Oregon. I’ve been an investing member since the group — the Willamette Angel Conference , nicknamed (ugh) the WAC — started. . We now have an investment in Cascade ProDrug, using technology developed at our own University of Oregon (based in Eugene, where I live) to help people

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What to do About that Chip on Your Shoulder?

Both Sides of the Table

I’m fond of saying that I look for entrepreneurs that have a chip on their shoulder. That they have something to prove. That they’re not afraid to stick their noses up to the establishment. I have always felt this way. It’s something I kind of seek out. I guess my thoughts are that if you’re part of the country club you have a vested interest in protecting the existing order and that disruption happens more from those that are on the outside wanting to change the rules.

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Marketing Presentation from Blue Glass Conference

Both Sides of the Table

I recently spoke at the Blue Glass conference on the topic of marketing. I’ll write up some thoughts in a blog post format soon. I’ve been spending time looking at marketing conversion metrics at portfolio companies lately. We’ve been testing things like: How do Facebook “Likes” perform relative to FB ads that drive you directly to a web page.

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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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Find your core competency.

Berkonomics

Consider your core. It is the one skill, process or advantage you have over your competition. Then think of all the things you do to surround that core with people and assets that complete the company and allow you to release your product or perform your service. Now consider how many of those surrounding assets and services are really necessary for you to perform in order to protect and grow your core.

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Protect and grow your core competency.

Berkonomics

It is a rule that early stage managers should find, protect and grow the core business, finding resources wherever possible to service that core in the form of variable expense, to be added to or shed at will as the company finds its niche and establishes a pattern of growth. From administrative services supplied by personal assistants located in India, to designers and producers of prototypes in China, to call centers managed and located in the Philippines, there are efficient, well organized s

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Organize globally.

Berkonomics

Even the smallest business can now reach throughout the globe to find resources for design, development, support and consultation. There are people and companies everywhere willing to work by the hour, providing great skill sets as needed, able to be shed when the job is complete. Some of the best companies I have become involved with are composed of a few critical people who have relationships with a number of service suppliers around the world to add to the team as needed.