June, 2017

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Should Startups Care About Profitability?

Both Sides of the Table

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. One of them is whether profitability matters. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up because, “How could they succeed when they’re not even profitable!

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The Rainy Day Fund of Reputation

This is going to be BIG.

One aspect of venture capital that rarely gets talked about is competition to get into a deal. What happens when a founder has that rare wealth of riches when they're choosing who they're going to allow onto their cap table? The tables turn and the one being pitched to becomes the one pitching. The moment when you find out that you're not guaranteed a slot is my least favorite as a VC.

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How Revolving Micro-Funds Lift Women Out of Poverty, Plastic Out of the Environment

Entrepreneurs' Organization

Monique Maissan is an EO Shanghai member, CEO of Vision Textiles and founder of Waste2Weave. . “Be the change you wish to see in the world,” is the quote attributed to Mahatma Gandhi. During a trip to that great Indian leader’s homeland, EO Shanghai member Monique Maissan experienced a kairos moment, realizing her true purpose: To empower women in India’s handloom industry with a living wage for textiles produced from recycled plastic yarns.

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Keeping Engineers Engaged And Happy Is Critical - Here's How To Do It

FundersClub

Christopher Steiner is the founder of ZRankings , and Aisle50, YCS11, which was acquired by Groupon in 2015. In the history of the U.S. economy, particular classes of workers rarely have had a run so prodigious and extended as the current ride that engineers and developers find themselves on. The nature of capitalism means that lucrative job categories that experience shortages are typically fed with hordes of newly-trained workers who even out the imbalance.

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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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Will tech kill your job?

Berkonomics

Close. Stop me if you’ve heard this story before. “My job as a (newspaper publisher telephone installer, stockbroker, travel agent, retail store manager) is safe as this economy continues to grow.” Yup. Thought so. We are in a decade of creative destruction that will affect most everybody. And the prime motivators of this massive destruction are the same class of entrepreneurs and innovators that have done it before.

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Details of Upfront Ventures New $400 Million Fund

Both Sides of the Table

I am so proud and humbled to be able to formally announce that Upfront Ventures has raised its 6th venture capital fund in the past 21 years. Upfront VI is our latest core fund and is $400 million to invest in early stage entrepreneurs. This brings our combined funds under management to nearly $2 billion. A huge thank you to all of the Limited Partners who have entrusted us with your capital, time and reputations.

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You Can Hear the Desperation When They Pull the Trigger: Gun Control or Empathy

This is going to be BIG.

I didn't grow up in a neighborhood where gunshots were a thing--and I know I am incredibly lucky for that. That's why when I pulled up to the corner of Atlantic and Fourth by the Barclay's Center yesterday at a couple of minutes after 2pm, the sound of gunfire was pretty startling, and it's not something I can easily shake. Pop! Pop! Pop! Pop-pop-pop!

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Q&A with EO’s 2017 Global Citizen of the Year: Cameron Madill

Entrepreneurs' Organization

Cameron Madill is an EO member in Portland, EO’s 2017 Global Citizen of the Year winner, founder of B Local PDX, and founder and CEO of PixelSpoke , a web design and marketing agency. Each year since 2013, EO recognizes one outstanding member who embodies the heart and soul of volunteerism, and who paves the way for others to follow, through its EO Global Citizen of the Year Award.

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Silicon Valley is a surprisingly clubby ecosystem: FC's Alex Mittal

FundersClub

Being an effective founder means questioning current paradigms, asking ‘Is there a better way to do this—and am I the person to do it?’ It’s that line of thinking that leads people to create disruptive companies, to solve problems that were thought to be intractable. Venture capital investing offers different challenges than those associated with tech entrepreneurship, but Alex Mittal, co-founder and CEO of FundersClub, approached the sphere of venture capital the same wa

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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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Does your business need money? Read this!

Berkonomics

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work.

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Prioritizing Your Startup's Roadmap

Tomasz Tunguz

One typical Friday morning in 2004, I walked into a government building and headed to work. I was a junior Java engineer and part of a hired team building an internal system for a government agency. We were a few days behind on schedule, and a technical issue arose. During the morning team meeting, we made a plan to refactor a small key part of the codebase - an effort that should have taken just the morning.

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What is the Right Burn Rate for your Startup?

Both Sides of the Table

One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is. That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management. Of course there is no right answer but it’s a function of how much capital you have raised, your prospects for raising more capital in the future, your growth rate and y

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History of The MP3

Unvalidated Learnings

How An Algorithm Transformed The Music Industry And Created The Mobile & Social Web As the music industry recently announced its first annual revenue growth after 15 years of uninterrupted contraction, I thought it was a good time to share some of the things I learnt from reading Stephen Witt’s book How Music Got Free. It provides a fascinating account of how a relatively obscure scientific breakthrough?

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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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5 Best Practices of a Robust Mentorship Program

Entrepreneurs' Organization

Jessica Moseley is an EO member in Washington, D.C., and CEO of TCS Interpreting , providing world-class language access to the deaf community. The agency has developed a robust internship and mentorship program. Jessica shared best practices for developing such a program. Internships provide practical business experience as a student or other novice narrows the scope of their chosen profession.

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FundersClub Weekly Newsletter - June 15, 2017

FundersClub

FundersClub Portfolio News. Jerrod Engelberg of FundersClub hosted a Q&A on FC Live with Brayton Williams of Boost VC , and the full video can now be watched here: Q&A with Brayton Williams of Boost VC — FundersClub Live Series. ShipBob , a Chicago based company that gives the power of Amazon logistics to every small business, raises $17.5 million with plans to open e-commerce distribution centers in more cities in " Warehouse Startup ShipBob Raises $17.5 Million Amid Expansio

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Where is the best source of early stage investment?

Berkonomics

If you have been following our recent insights, you’ll be up to speed knowing that professional investors negotiate tough terms, from provisions of control over asset acquisition, eventual sale of the company, future investments, forced co-sale when others attempt to sell their shares and more. And yet, in an earlier post, we spoke of the problems that come when taking unstructured investments from friends and family.

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Apprenticeship

Tomasz Tunguz

I am most grateful for my work experiences that were apprenticeships. Whether it was Philip who taught me how to write a proper Java function (10 lines or less), or Kim and Scott who are great managers, or the partners at Redpoint who invested a huge amount of time to educate me, those collections of experiences have taught me far more than I could’ve expected.

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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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One Simple Way You Can Make an Actual Difference in Somebody’s Life

Both Sides of the Table

Fresno State students receive supplies for school with help from Renaissance Scholars staff John Hunt, Jr. (left) and Kizzy Lopez (right). We’re all bombarded with social media campaigns asking for us to Tweet, share, like, change our badge, use a hashtag or generally show outrage at a topic du jour. We jump in when we feel compelled or want to support the person who enlisted us.

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Sustainability will eat the World

Thomas Grota

I always get asked as many other investors: “what’s the next big thing to invest in…?” The standard.

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Why You Shouldn’t Write Your Own Sales Copy

Entrepreneurs' Organization

By Larry Alton, business consultant. At some point, every entrepreneur needs to write copy for his or her company’s website, sales pitches, blogs, and other marketing materials. It’s at this moment when you have a decision to make. Do you choose to write your own copy or hire a professional writer to do the heavy lifting? While there’s a case to be made for both sides, most successful entrepreneurs have found that it’s far better to hire a copywriter. 4 Reasons to Hire a Writer.

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How To Get Data For AI Applications - Tricks and Tactics

FundersClub

Any engineer who has taken the first steps of learning to work with AI methods has confronted the foremost challenge of the space: sourcing enough high quality data to make a project viable. Sample sets of data can be had, of course, but working with these isn't much fun for the same reason that solving a machine problem for computer science class isn't much fun: quite simply, it's not real.

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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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What do you give up when taking outside investors?

Berkonomics

Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first. From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground.

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SaaS Fundraising in 2017

Tomasz Tunguz

When I analyzed the SaaS fundraising market in 2016 , three trends emerged. The number of SaaS companies raising rounds had stalled, while the total number of dollars plateaued. Meanwhile, round sizes swelled. In other words, there was a concentration of capital in an increasingly small number of names. A year later, those trends have continued to converge, and SaaS valuations have resurged, reaching their highs of the 2014-2015 boom.

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Why early-stage startups should wait to calculate LTV:CAC, and how they should use it when they do

For Entrepreneurs

I have the great pleasure in introducing you to a new writer, Jared Sleeper, who will make regular contributions to this blog. We were very excited to have Jared to join Matrix Partners recently as he is a truly exceptional individual. Jared grew up in Maine working in his family’s grocery store. He had a.

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The UrbanTech Movement is Transforming Cities

Gust

Urbanization is a defining process of modern life. More than half of the world’s population now lives in cities, and the number of urban citizens around the world is projected to rise to 66% by 2050. In the US, over 80% of the population lives in urban areas with 1 in 7 Americans living in New York, Los. Read more >. The post The UrbanTech Movement is Transforming Cities appeared first on The Gust Blog.

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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