Both Sides of the Table

MARCH 11, 2011

Secondly, they had an owned & operated (O&O) website – Google.com – and Overture had shut down GoTo.com at the request of their very profitable and large distribution partners. Too many entrepreneurs focus on dilution. Bill attributes to two primary reasons. That gave Google a huge cost advantage.

Product 350

Product Tuvalu Dilution Incubator 350

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. But they’re big and they have very experienced operators like Brett Brewer running things. It has awesome features that my main competitor doesn’t have. BUT … it’s your company.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

JUNE 28, 2021

Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution. They will need more money. If you subscribe to truths one to five, startup investing can be lucrative.

Angel Investor 361

Angel Investor Accredited Investor IRR Angel Groups 361

Startup Professionals Musings

MAY 26, 2023

Make sure new solutions offered actually build your brand, rather than dilute it. Often products that introduce disruptive new technologies, such as electric vehicles or healthcare solutions, are dependent on supportive infrastructures, operational regulations, or insurance approvals before benefits can be realized.

Product 354

Product Technical Review Artificial Inteligence Dividend 354

Startup Professionals Musings

MAY 9, 2014

Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution. They will need more money. If you subscribe to truths one to five, startup investing can be lucrative.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

Both Sides of the Table

APRIL 27, 2010

Most of what I learned about operating startups I learned from the really tough years at my first company from 2001-2003. But the firm that funded my first startup was loyal to me for having stuck around in what they knew to be pretty tough times and having suffered much dilution. There is a lot of long-term value in loyalty.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

View from Seed

OCTOBER 24, 2019

The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. No good investor would want the founder/CEO of a company to have insufficient ownership by the series A, and every founder I know is sensitive to taking too much dilution.

Dilution 149

Dilution B2B Burn Rate Early Stage 149

Steve Blank

OCTOBER 22, 2024

This means that on average one out of every 100 to one out of 1000 quantum gate operations will result in an error. What are the physical specs – unique hardware needed ( dilution cryostats , et al) power required , connectivity, etc. System performance is limited by the worst 10% of the qubits. How will the computer be programmed?

Technical Review 267

Technical Review Illinois Algorithm Software Review 267

Startup Professionals Musings

AUGUST 24, 2016

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The challenge is for real co-founders to keep their equity percentage above 50%, or they effectively lose control of operational decisions. But don’t get greedy.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

The Startup Magazine

MARCH 14, 2022

5) Managing the operations. As the seed funding has been raised by this time, the company starts its operations and gradually expands. The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. The business logistics are defined, and a brand identity is created.

Technical Review 167

Technical Review Due Diligence India Startup 167

Startup Professionals Musings

DECEMBER 16, 2017

Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution. They will need more money. If you subscribe to truths one to five, startup investing can be lucrative.

Angel Investor 190

Angel Investor Accredited Investor IRR Angel Groups 190

Up and Running

JULY 2, 2014

We shared all of this with our attorney before she helped us write our Operating Agreement (OA), so we assumed we were in good hands. of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. The deal we made with him was he’d get 33.3%

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Steve Blank

NOVEMBER 13, 2018

Startups and VC’s have historically operated on the “I’ll deal with this later” principle in letting early employees know what happens as the company scales. Unless you have them capture the unique aspects of the culture, it will become diluted and disappear among the new hires. Loss of Certainty? Loss of Community?

Part-Time VPE 334

Part-Time VPE Employee Cofounder Hiring 334

The Next Web

JUNE 15, 2012

After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. Not to mention the fact that every time you compensate with equity, you dilute your own ownership of the business.

Equity 116

Equity Stock Options Vesting Stock 116

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Both Sides of the Table

JULY 25, 2010

. “Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Both Sides of the Table

SEPTEMBER 29, 2009

The other investors around the table didn’t agree nor did the “independent” board members who were willing to turn a blind eye to capital inefficiency since they didn’t have any economic interests that would be diluted by continued fund raising to support a capitally inefficient management team.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

ReadWriteStart

OCTOBER 28, 2010

Common areas to address are decisions around capitalization, executive hiring and firing, share issuance (dilution), and acquisitions. Too many people mix the notion of being a shareholder in a startup and having an operating role. You'll need to decide what kinds of decisions the board makes, and which ones it won't.

Cofounder 128

Cofounder Founder Equity Dilution 128

Up and Running

JULY 1, 2020

It starts with a high-level strategy and continues all the way to market analysis, sales plans, operations planning, and financial modeling. Operations, marketing, and personnel plans: You’ll outline the details of what operational costs, marketing budget, and additional positions you’ll need for your expansion to be a success.

Business Plan 152

Business Plan Forecast Operations Dilution 152

ReadWriteStart

JUNE 1, 2020

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JUNE 13, 2011

The 54 companies in the study operated product and service businesses, had been in business on average 9.6 They end up trying to do too much for too many, which dilutes their focus and often the quality of their product or service. The problem is that too many entrepreneurs never learn to say ‘NO!’

Indianapolis 219

Indianapolis Minneapolis Kentucky Virginia 219

YoungUpstarts

SEPTEMBER 23, 2017

The resources would help you to craft everything, from a proper business plan and legal structure, to agreements and basic operational processes. Nonetheless, many entrepreneurs don’t do this because accepting ownership dilution when it isn’t necessary, is too painful. Save where you can. Often, this is considered as a mistake.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Startup Professionals Musings

JUNE 5, 2015

Thus every serious investor reserves a certain amount of his investment capital for follow-on rounds, which allows them to stay to course to success, even with dilution. They will need more money. If you subscribe to truths one to five, startup investing can be lucrative.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Business Plan Blog

OCTOBER 4, 2013

Having too many co-founders will only lead to your eventual dilution. Hire a VP of Finance that can increase profitability by monitoring operations, legal fees, HR expenses, office space and the like. Be sure to leave plenty of equity for investors. You will likely need to raise more rounds of capital than you originally anticipated.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

YoungUpstarts

MAY 9, 2017

The process of implementing Lean across the organization is usually referred to as a Lean transformation, because it transforms every facet of how a company operates – including its culture, decision making, and plans for the future. individuals dilute their focus and slow their productivity. 9 Reduced Costs.

Lean 124

Lean Agile Technical Review Dilution 124

Hearpreneur

JANUARY 30, 2022

Businesses are being more concerned about the changing habits of their stakeholders and are adjusting their culture and operations accordingly. There are also staffing issues, which limit full operational services. This won’t just be about daily business operations but performance. 18- Switch to remote work.

Entrepreneur 127

Entrepreneur Green Technical Review Social Media 127

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. Every conversation about fund raising should start with what your current operational needs are and the stage of your business. So if you can take 27% dilution for $1.5

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

YoungUpstarts

OCTOBER 16, 2016

In business, growth is a big deal, especially when you think about this: Most businesses cease operations and shutter their doors before ever really hitting their stride. But by year 10, just one-third remain in operation. But take it from what a good friend and advisor once said to me: “Ego is dilutive to net worth.”.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

The Next Web

SEPTEMBER 15, 2013

Although the API was treated as a new product within Netflix, it was still operating under the company’s larger business objectives. It is more likely to come with increased costs and risks that will weigh down your returns, dilute your resources for the larger opportunity, and distract you from the real prize.

API 135

API Audience Dividend Programming 135

www.avc.com

SEPTEMBER 22, 2011

Once you have assembled a core team that is operating the business, you need to move from art to science in terms of granting employee equity. The other important data point is the number of fully diluted shares. You get that by dividing the best value of your company ($25mm) by the fully diluted shares outstanding (10mm).

Equity 64

Equity Employee CTO Hire Fractional CTO 64

betashop.com

OCTOBER 8, 2012

At Fab, our virtual product is our website & apps, our physical products are the merchandise we sell, and our experience product is our operations and service. Do they operate in silos or do they foster teamwork and collaboration? Don’t skimp on fundraising because of dilution fears.?. All the rest is noise. This is tricky.

Technical Review 108

Technical Review Technology Software Review Valuation 108

The Next Web

SEPTEMBER 13, 2013

Finding the right partner is a much bigger win than the extra cash or minimizing dilution. Be sure to raise well in advance of this scenario and plan for a very long cycle of about nine months – just to be cautious. Finally, don’t over-optimize on valuation.

Asia 132

Asia Silicon Valley India Term Sheet 132

Startup Professionals Musings

NOVEMBER 8, 2021

Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. They operate the business to sustain a minimal level of cash flow necessary to support the lifestyle. Startup funding comes from personal savings and family.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

K9 Ventures

JUNE 12, 2012

VCs also operate in a limited time window that is determined by the duration of their funds. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. It is a tool. They use that tool to buy ownership in a company.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. The average monthly operating expenses is $70,335. 30% have been operated by females, 70% have been operated by males. 40% have been operated by “visible minorities”, 60% have been operated by “non-visible minorities”.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Lessons Learned

JUNE 15, 2009

For example, imagine a team operating in a traditional waterfall development system, without continuous deployment, test-driven development, or continuous integration. So we need to find solutions that operate at the systems level to break teams out of this pincer action.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

K9 Ventures

JUNE 12, 2012

VCs also operate in a limited time window that is determined by the duration of their funds. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. It is a tool. They use that tool to buy ownership in a company.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105