VC Cafe

MARCH 16, 2025

Mention that you do “Consumer tech” as a startup founder and you’d be limiting your funding options to one third of the venture capital funds (in Israel that figure is probably closer to 10%). Until now, consumer tech was perceived as a risky binary investment. But don’t just take it from me.

Technical Review 78

Technical Review B2C Generative AI IPO 78

Startup Professionals Musings

DECEMBER 6, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Solicit funds from friends and family.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Apply for contests and business grants.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Apply for contests and business grants.

Product Development 177

Product Development Cost Developer Product 177

Both Sides of the Table

SEPTEMBER 17, 2013

The main thrust of the post is that with YouTube taking a 45% of revenue and talent taking 70% of the remaining revenue, YouTube Networks didn’t have sustainable businesses unless they invested heavily in technology as a tool to increase margin and provide defensibility. That is the definition of Disruptive Technology.

Video 339

Video Technical Review Distribution Aggregator 339

Both Sides of the Table

MAY 23, 2012

I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us. Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

YoungUpstarts

OCTOBER 13, 2020

The global lockdown, due to the pandemic, has forced companies to digitize their operations. In this way, we can reduce the time spent in commuting, reduce the environmental impact of our activity, optimize living costs and improve our work-life balance. The reduction of the business trips of their employees goes in that direction.

Technical Review 278

Technical Review United States China Cofounder 278

Both Sides of the Table

APRIL 20, 2017

So how did a company that provides storage grow so fast (we’ll exit 2017 with 10’s of millions in recurring revenue), why is it so defensible and is it really a tech startup? If you buy that Amazon is a tech startup then essentially you’ve already answered the question. In short — how the hell did we raise $30 million?

Technical Review 268

Technical Review Los Angeles Software Review Artificial Inteligence 268

Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. I learned to avoid unnecessary conferences, avoid non-essential costs and strive for at least a neutral EBITDA if for no other reason than nobody was interested in giving us any more money. Until we weren’t.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Apply for contests and business grants.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

The Startup Magazine

JANUARY 21, 2025

The Shift to Sustainable Transport Transportation is changing quickly due to growing concerns about the environment. The rise of electric and hybrid vehicles addresses these issues, reducing operating costs and appealing to those who value sustainability. The initial purchase price of electric and hybrid cars tends to be higher.

Technical Review 144

Technical Review Government Operations Demand 144

Startup Professionals Musings

APRIL 4, 2022

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Apply for contests and business grants.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

The Startup Magazine

AUGUST 12, 2024

While artificial intelligence has been decades in the making, only recently has the tech industry generated such high expectations for how it will usher in a new era for digital innovation. Following the AI boom in 2023, the spotlight has been even more on this technology, ensuring that this would be the year when companies went all-in on AI.

Technical Review 167

Technical Review Cost Artificial Inteligence Analytics 167

Both Sides of the Table

SEPTEMBER 22, 2012

Growth will slow, partly due to internal limits and partly because the company is starting to bump up against the limits of the markets it serves.” He also nails the reason why venture capital is still necessary to grow large businesses quickly in a world where the costs of running startups have fallen dramatically. Not Google.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Both Sides of the Table

FEBRUARY 9, 2013

It got me thinking about the tech industry. Because often these Conference Hos bring back their latest idea from the hot tub cocktail session with their favorite tech superstar. In the tech world we are breeding a bit of a culture where we have entrepreneurs who are conference famous but have small have small revenues and red ink.

Software Review 398

Software Review Technical Review China Mexico 398

Both Sides of the Table

MARCH 21, 2013

I think it’s important for enterprise startups to layer in professional services into your revenue stream. deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. Control Size of PS Revenue Relative to Software Business. configuration.

Software Review 321

Software Review Software IP Technical Review 321

Startup Professionals Musings

MAY 13, 2023

Some analysis and due diligence along the following lines should be performed on every idea, as a reality check, before committing your efforts and other people’s money to building a business: Look for places where competitors are few. Even good social causes need to bring in revenue to continue their worthy efforts.

Technical Review 267

Technical Review Due Diligence Intellectual Property Internet 267

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. How long does it take me to pay back my original customer acquisition costs?

Operations 286

Operations New York City Technical Review Startup 286

View from Seed

NOVEMBER 18, 2020

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But ops & customer support is another 17-20% of revenue and arguably you couldn’t run the business if you took that away.

North America 401

North America IPO Prospectus Europe 401

Startup Professionals Musings

JUNE 24, 2020

For example, if your idea is so new and different that it implies real social or technological change is necessary before widespread acceptance, investors will define your market as nascent or unproven, and be very reluctant to fund you, no matter how convincing your projections may be. Typical valuations range from 3x-5x revenues.

Artificial Inteligence 436

Artificial Inteligence Marketing Valuation Startup 436

Startup Professionals Musings

MAY 26, 2023

Every one of you business owners I know periodically introduces new products and services to sustain growth, fight off competitors, or take advantage of new technologies. The cost of any new product these days must include education and rollout marketing, perhaps equal or greater than the development costs. Incent these early.

Product 354

Product Technical Review Artificial Inteligence Dividend 354

Steve Blank

AUGUST 21, 2013

In the real world a big pivot in life sciences far down the road of development is a very bad sign due to huge sunk costs. Other pivots involved moving from a platform technology to become a product supplier, moving from a therapeutic drug to a diagnostic or moving from a device that required a PMA to one that required a 510(k).

SBIR 321

SBIR Technical Review Lean Startup 321

Steve Blank

OCTOBER 24, 2017

A version of this article is in the Harvard Business Review. — Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. 20th Century Tech Liquidity = Initial Public Offering.

Founder 281

Founder Technical Review CTO Hire IPO 281

Startup Professionals Musings

AUGUST 23, 2020

But there is no magic formula on how to bring these together a second time, but I did see some good insights on the parameters in a classic startup business parable, “ Endless Encores ,” by Ken Goldstein, who advises startups and has built companies in technology, entertainment, media, and e-commerce.

Technical Review 324

Technical Review Entrepreneur Due Diligence Business Model 324

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Net burn is the amount of money you are losing per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Professionals Musings

APRIL 14, 2021

As a logical and data-driven business advisor, I have long focused on facts, technology, and quantifiable pain in guiding entrepreneurs. They depend on their favorite social channels and peers on social media to make emotional decisions for them, rather than rely on any kind of “cost-benefit” analysis.

Customer 432

Customer Social Media Dividend Technical Review 432

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Apply for contests and business grants.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Both Sides of the Table

JULY 23, 2014

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. But the biggest changes in our industry have been driven by technical changes themselves to which we are just observers and fortunate beneficiaries. From a technology perspective our journey is nowhere near over.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

JANUARY 11, 2014

There’s an article making the rounds in tech circles titled “ Growth Hacking is Bull ” written by Muhammad Saleem. If you are early in a platform (Zynga to Facebook, AngryBirds to iOS, Maker Studios to YouTube) you catch a major marketing wave where acquiring customers and growing revenue is exponential.

Technical Review 384

Technical Review Hockey Stick SEM Channel 384

Startup Professionals Musings

SEPTEMBER 27, 2014

Some analysis and due diligence along the following lines should be performed on every idea, as a reality check, before committing your efforts and other people’s money to building a business: Look for places where competitors are few. Even good social causes need to bring in revenue to continue their worthy efforts.

Technical Review 267

Technical Review Due Diligence Entrepreneur Intellectual Property 267

The Startup Magazine

SEPTEMBER 30, 2020

As prices for hardware and sensors continue to drop, organizations can now cost-effectively add intelligence and connectivity to their industrial infrastructure. Oil and gas companies have a pain point: the need to remotely manage their sites more cost-effectively , reduce their carbon footprint and improve the safety of their workers.

Revenue 179

Revenue Technical Review Cost Operations 179

Startup Professionals Musings

OCTOBER 26, 2022

Business agility is defined as the ability to adapt rapidly and cost efficiently. According to a classic survey conducted by Dimensional Research for Zendesk , 90 percent of respondents asserted that positive online reviews influenced buying decisions, and 86 percent admitted buying decisions were influenced by negative online reviews.

Agile 379

Agile Technical Review Leadership Social Media 379

The Startup Magazine

JANUARY 5, 2025

Whether you are trying to increase your revenue or improve your customer satisfaction, taking your business to the next level means looking at all of your strategic opportunities. Leverage Technology for Growth Technology is a powerful tool for driving efficiency and innovation.

Software Review 147

Software Review Technical Review Retention Campaign 147

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition. The first input is CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

FEBRUARY 14, 2022

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Nail the solution. Process myth: Why building a product leads to failure.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

MAY 25, 2020

Of course, if you are able to bootstrap your startup, and don’t anticipate the need for outside investors, you can technically ignore the first two points. If you can convince investors that your startup will generate a solid revenue stream, and the market won’t go away any time soon, they may see an opportunity for an ever larger return.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

VC Cafe

MARCH 1, 2024

In addition, founders thinking about starting a company can be overwhelmed by choice, as there are so many problems to tackle with technology, but it could be comforting to know that investors are interested in those areas in the first place. Looking for companies creating tools to facilitate construction of or fine tuning models.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176