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Lean Startups aren't Cheap Startups

Steve Blank

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. Over its lifetime a Lean Startup may spend less money than a traditional startup. Lets see why.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

Cram downs are back – and I’m keeping a list. At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies.

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5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

Since Angel investors put money into 60 times as many companies as venture capital funds, according to Wikipedia, early-stage startups need to focus first on the key thresholds that drive these investment decisions. Angel investors look for prior domain and startup experience. The same hold true for venture capital investors.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

As a courtesy if you enjoyed his write-up please check out his startup company, ChannelStack. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. I feel like I know him better personally since he's always in the chat room during the show asking questions).

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The Damaging Psychology of Down Rounds

Both Sides of the Table

Many VCs would prefer to avoid having to cram down other VCs by investing at a lower price or even if it’s not a cram down they prefer not to invest in a down round that forces the VC to take a “write down” on their valuation sheets they should their LPs. Startup Advice'

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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. In the interim, there is no market for the shares, and no dividends or interest.

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Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. In the interim, there is no market for the shares, and no dividends or interest.

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