Startup Professionals Musings

AUGUST 24, 2016

If none of these five items is a clear differentiator in your case, a logical approach would be to assign each an equal weight of 20% of the total, and partition the total equity based on each co-founder’s correlation to each variable. Keep your wits about you to make sure that dilution is done equitably and evenly.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Steve Blank

APRIL 10, 2019

There are four problems: First, as the company raises more money, the value of your initial stock option grant gets diluted by the new money in. While unique technology or market insight is one component of a successful startup everyone agrees that attracting and retaining A+ talent differentiates the winners from the losers.

Stock Options 335

Stock Options Stock Vesting Common Stock 335

Startup Professionals Musings

JULY 23, 2021

Yet every change can cause brand dilution or competition you don’t need. Differentiate your brand based on a higher cause. For example, TOMS shoes differentiated their brand of common shoes by highlighting a higher purpose from founder Blake Mycoskie of donating a pair of shoes to the needy for every pair sold.

Leadership 426

Leadership Management Brazil Differentiation 426

Startup Professionals Musings

DECEMBER 29, 2021

I’m often surprised when you as an aspiring entrepreneur, looking for investors, tell me your solution is so innovative that you don’t have to worry about differentiating it from competitors, and customers will flock to it without a real marketing campaign. Personalization is the ultimate differentiation.

Restful 336

Restful Differentiation Social Media Dilution 336

The Next Web

SEPTEMBER 15, 2013

Even service companies like Amazon and Salesforce, whose systems are differentiated in part by their APIs, use them as a tactic to provide increased value for the primary business, which is providing robust services supporting cloud computing and CRM respectively.

API 135

API Audience Dividend Programming 135

Startup Professionals Musings

FEBRUARY 14, 2021

Clear product differentiation and a singular focus. The focus is diluted, it’s hard to keep up with individual product changes, and you will always be on the defensive. Successful entrepreneurs start early building their own brand through social media, industry forums, scheduled events, book publishing, and speaking engagements.

Intellectual Property 417

Intellectual Property Angel Investor Dilution Differentiation 417

Both Sides of the Table

FEBRUARY 17, 2011

If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business. How much dilution am I going to have to take now? So if you can take 27% dilution for $1.5 25% dilution). But this is the exception, not the rule.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

thebarefootvc

MAY 8, 2012

It is the human capital involved, both internally with company teams and externally with advisors, boards and investors, that is going to differentiate which startups survive and become the disruptive businesses of tomorrow. Money is fast turning into a commodity.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Startup Company Lawyer

MARCH 14, 2010

To differentiate it from typical “Series A&# preferred stock, which comes with certain expectations with regard to rights. If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Anti-dilution protection. Future rights. Board seat.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

JANUARY 20, 2011

That’s OK if it’s your problem as long as your business really is differentiated and compelling. I say this all the time: the “sweet spot&# of dilution on a normal deal is 25-33%. If you’re struggling a bit on funding you might see 40% dilution. If you’re SUPER hot maybe lower.

Dilution 284

Dilution Valuation Seed Money Differentiation 284

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Both Sides of the Table

APRIL 27, 2014

I guess if you’re in high-volume, low-differentiation mode perhaps this is efficient for you. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. Inbound is seldom differentiated dealflow. Don’t even get me started on Demo Days.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

Both Sides of the Table

APRIL 25, 2011

Service as a bridge to a product business - One of the best ways for young startups to finance their business without any dilution is what I call “customer financing,&# which is mostly only possible in businesses that target businesses rather than consumers. In a down market IP can become a huge differentiator.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

betashop.com

OCTOBER 8, 2012

Very hard to do, but it’s what differentiates great companies from good companies. A couple of dilution points here or there wont matter in the long run but working with the right people will.? Don’t skimp on fundraising because of dilution fears.?. Could they present to investors or reporters about Fab??. Think 5 steps ahead.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

AUGUST 14, 2014

Clear product differentiation and a singular focus. The focus is diluted, it’s hard to keep up with individual product changes, and you will always be on the defensive. Successful entrepreneurs start early building their own brand through social media, industry forums, scheduled events, book publishing, and speaking engagements.

Intellectual Property 234

Intellectual Property Angel Investor Dilution Differentiation 234

YoungUpstarts

NOVEMBER 17, 2014

Too many of fonts not only reduce the readability of the label, but also dilute the message you are trying to convey through the label. A consumer differentiates your product from the others usually by looking at its image or logo. Use a limited number of fonts. Avoid using more than 2 types of fonts on your product label.

Differentiation 197

Differentiation Dilution Green Matching 197

Reid Hoffman

AUGUST 17, 2021

But the key is to ensure your product has a strong differentiator, which is exactly how Ramaswamy and his Neeva co-founders positioned the search engine company when it launched last year. If they are taking on problems that the other company is really, really, really good at, then they better have a strong differentiating thing.

Cofounder 69

Cofounder Differentiation Search Advertising 69

Reid Hoffman

AUGUST 17, 2021

But the key is to ensure your product has a strong differentiator, which is exactly how Ramaswamy and his Neeva co-founders positioned the search engine company when it launched last year. If they are taking on problems that the other company is really, really, really good at, then they better have a strong differentiating thing.

Cofounder 69

Cofounder Differentiation Search Advertising 69

This is going to be BIG.

NOVEMBER 28, 2021

A lot of smaller startups are complaining that it’s super difficult to recruit talent right now, but few are differentiating their offering. Take a little more dilution, raise a little more money, and spend on the most ignored personal goal in the market.

Hiring 190

Hiring Early Stage Marketing Term Sheet 190

ReadWriteStart

JANUARY 13, 2024

Moreover, they must prioritize innovation and agility to differentiate themselves from many companies offering similar cybersecurity solutions. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

ConversionXL

SEPTEMBER 17, 2021

Some know how they do it, whether you call it your differentiated value proposition or your proprietary process or your USP. Use your marketing strategy to ensure campaigns never dilute your brand perception. It’s the answer to the question at the heart of Simon Sinek’s famous Golden Circle presentation : Why?

Campaign 109

Campaign Social Media Audience Channel 109

VC Cafe

OCTOBER 26, 2010

It is said to be a private equity round and at this stage it is unclear if previous investors will be allowed to participate (or just get diluted). The differentiation of PrimeSense’s product is its ability to analyze 3D depth using a single (and relatively inexpensive) camera. .

Private Equity 111

Private Equity Dilution Valuation Differentiation 111

Venture Chronicles

MAY 26, 2010

Product differentiation becomes a tactical exercise and it is rare when a disruptive innovation upsets the market balance because the best capitalized companies can buy their way up the innovation ladder or use good marketing to minimize the disruptive nature of competitive offerings.

Lean 40

Lean Early Stage Valuation Startup 40

Lightspeed Venture Partners

SEPTEMBER 21, 2013

With his back to the wall and about to run out of money, his first priority should have been runway extension, not dilution from new capital. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small. And although the headline difference between a $5.7M

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

The Startup Magazine

JULY 15, 2023

Make it so that they don’t need to combine services – something that could dilute your brand and offering. These advances mean that security businesses have new opportunities to differentiate themselves from the competition. We now have machines that can plan, predict and display an intimate knowledge of the theory of mind.

Security 148

Security Artificial Inteligence Differentiation Dilution 148

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Brandanew

JULY 11, 2015

Its existing premium customers won’t take it kindly as it dilutes the said image. Brand Differentiation. Differentiation, as the word suggests is how a brand stands out in the crowd. For instance, Rolls Royce has the image of a luxury car maker. So, it cannot be making a budget car even if there is a market.

Virginia 100

Virginia Equity Differentiation Dilution 100

Lightspeed Venture Partners

OCTOBER 22, 2012

The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator. The founders focused too much on dilution and on Barbara’s clever ideas on a dimension (marketing) that was not critical to the business.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Hunter Walker

AUGUST 8, 2023

Regardless, even in rounds with no punitive structure, the quickest way to underperformance as a fund is by increasing your ‘dilution before exit’ portfolio model assumptions by 1000-5000 basis points. Lower performing VCs will disappear faster and new entrants will differentiate themselves. Soft Acquisition Market.

Portfolio 118

Portfolio Cap Table LP Valuation 118

Entrepreneurs-Journey.com by Yaro Starak

JULY 20, 2010

Most people dilute the effectiveness of their social media by mixing messages. This is what I got out of the videos, which makes them must-view content if you have any interest in marketing via social media channels – The key differentiator: Social Media that brings you friends vs. Social Media that makes you money.

Social Media 100

Social Media Media Social Network Video 100

Rob Go

NOVEMBER 13, 2013

Instead, those funds try to invest in companies that can be “bigger”, but at the early stage, it’s hard to differentiate companies that could be $400M exits vs. $1B exits. The large fund may say to the founder,” wouldn’t you rather just raise $8M instead of $5M for the same (or marginally more) dilution?”

Dilution 61

Dilution Seed Stage Cofounder Early Stage 61

The Equity Kicker

MARCH 17, 2015

Big picture this increased capital efficiency is great for entrepreneurs because they suffer less dilution, but it does mean they have to do things they aren’t skilled at. The opportunity for investors is to help fill the gaps. The gaps that we most often fill are product, development, design, marketing, recruitment and fundraising.

Early Stage 60

Early Stage Venture Capital San Francisco Silicon Valley 60

Mucker Lab

SEPTEMBER 7, 2023

This entails oversimplifying culture by confining it to tangible elements, such as perks and narratives, potentially diluting its essence. These surface-level components, while not inherently flawed, lack the depth required to truly differentiate a company in the competitive landscape.

Early Stage 78

Early Stage Seed Stage Leadership Founder 78

K9 Ventures

NOVEMBER 21, 2011

2) The company can repurchase the founders’ Common Stock at the fair market value (FMV) price of the Common Stock, sell an equivalent amount of Preferred Stock, and then give the founder a bonus for the price differential between the Preferred price and the Common price. The concept of the Series FF stock is a good example of this.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

2) The company can repurchase the founders’ Common Stock at the fair market value (FMV) price of the Common Stock, sell an equivalent amount of Preferred Stock, and then give the founder a bonus for the price differential between the Preferred price and the Common price. The concept of the Series FF stock is a good example of this.

Founder 84

Founder Common Stock Preferred Stock Stock 84