Both Sides of the Table

APRIL 27, 2010

I learned how to better run a product management process. I learned how to integrate customers into our product development process. 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.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Startup Professionals Musings

APRIL 23, 2017

The first chasm is getting the customer requirements right, product or service, to satisfy a real need that a large number of customers will pay real money to satisfy. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

VC Cafe

FEBRUARY 27, 2024

To reduce the impact of dilution, the expectation is that startup valuation should more or less double between the pre-seed to the seed, and seed to series A (ideally backed by reasonable traction/ revenue multiples). That’s yet another reason for micro funds to move earlier in the fundraising timeline.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Up and Running

JULY 2, 2014

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. When fundraising for a startup, all investors dilute as additional investors join in on the deal. The deal we made with him was he’d get 33.3%

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Business Plan Blog

OCTOBER 4, 2013

If you have a technical background and you are focused on product development, consider a co-founder with a sales and marketing background that can focus on selling your world class product. Having too many co-founders will only lead to your eventual dilution. Be sure to leave plenty of equity for investors.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

The Next Web

OCTOBER 3, 2012

I have heard many founders — even in the first few months of product development — expect to raise seed rounds, pay themselves salaries, etc. This seems like a straightforward statement, yet many founders I have met don’t seem to make the connection. This simply is not the right attitude.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

ConversionXL

AUGUST 30, 2018

It slows product development. To find allies, ask : Which departments indirectly use your product and have connections to people in the user roles you’re targeting? Your established structure protects the ideas and process from free-wheeling input that can dilute your message. It slows product development.

Design 111

Design Framework Product Development Technical Review 111

YoungUpstarts

DECEMBER 18, 2014

One of its primary goals was to galvanize product development by discovering often-unstated customer needs and creating solutions for them. Unfortunately, Toyota diluted that system in its drive for global expansion and global sales leadership. Make it a duty to dissent (even when you have to shoot down a HiPPO).

Employee 162

Employee Operations Global Dilution 162

YoungUpstarts

MAY 6, 2019

Product development. Now that you have a refined product idea and a team that can turn this idea into reality, the product development stage will start. Initial product development usually consists of prototyping and MVP. Prototyping usually means the initial working draft of the product idea.

Startup 113

Startup Technical Cofounder Merger Early Stage 113

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

ReadWriteStart

JANUARY 27, 2011

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Also, an Incubation Radar profile on CrowdEngineering explains more about this very, very cool company doing crowdsourced customer support.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

David Teten

AUGUST 19, 2019

In addition, I’ve noted a few multi-product lending firms, e.g., Kapitus and United Capital Source , which provide RBI as one of many structural options to companies seeking capital. . We have a special program if you are pre-seed and need product development. Alternative Capital. “ You qualify if you have $5k+ MRR.

Revenue 60

Revenue Technical Review Software Review Equity 60

betashop.com

OCTOBER 8, 2012

I firmly believe that in this age where the product development life-cycle is so short and user feedback comes so quickly, you will know within a year whether you are focusing on a worthwhile one thing. A couple of dilution points here or there wont matter in the long run but working with the right people will.? This is tricky.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Startup Professionals Musings

MAY 19, 2014

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk. In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid.

Seed Money 242

Seed Money SBIR Dilution Government 242

Startup Professionals Musings

FEBRUARY 13, 2013

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk. In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid.

Government 230

Government Equity Cost SBIR 230

Startup Professionals Musings

JANUARY 2, 2011

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk. In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid.

Government 221

Government SBIR Dilution Database 221

Berkonomics

NOVEMBER 7, 2024

Later stage investors sometimes look for less, since the business has already proven its capability to stay in the game and has already completed its product development cycle, eliminating more risk for the investor. So, you’ve got to play with the numbers to determine your level of comfort.

Hockey Stick 62

Hockey Stick Liquidity Event Valuation Balance Sheet 62

YoungUpstarts

AUGUST 8, 2013

The second a brand lets its management be outsourced to someone else, the brand is at risk of diluting itself. Ryan Currie is a product manager at BizShark.com , with 5 years experience in online marketing and product development. Thinking Aloud Bizshark branding business advice business strategy Kardashians'

Dilution 203

Dilution Open Source .Net Web 203

Gust

MAY 11, 2014

Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk. In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid.

Seed Money 164

Seed Money SBIR Dilution Government 164

blog.nahurst.com

JULY 19, 2010

I assume both cofounders will be diluted equally as more employees and investors get involved. 2a] Has paying customers -10%: If the company already has paying customers, the non-technical cofounder has already eliminated a huge risk for the business; someone wants the product. [2b]

Technical Cofounder 43

Technical Cofounder Cofounder Equity Salary 43

David Teten

OCTOBER 1, 2015

At the same time, a direct equity investment (one where the dev shop acquires a share in the company immediately) puts the founders in a potentially uneasy position of having to dilute their company before a product is built. Second, the company must eventually own the product development and maintenance functions in-house.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Berkonomics

OCTOBER 30, 2014

loading the company with too much debt, and diluting the shareholders too early with additional equity investments. Process: Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing. There is a fine line between.

Dilution 94

Dilution Equity Channel Product Development 94

YoungUpstarts

JULY 23, 2012

I learned that most juices of exotic “superfruits” like pomegranate or cranberry are often diluted with “fillers” like apple, pear or grape juice. The sections on POM Wonderful, the billion dollar global business focused on 100% pomegranate juice, were especially enlightening.

Ruby 159

Ruby Fiji America Dilution 159

Berkonomics

OCTOBER 12, 2017

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch.

Employee 97

Employee Stock Options Dilution Salary 97

Startup Lessons Learned

AUGUST 14, 2013

It would be a blanket approach and, ultimately as you suggested, dilute the messaging and demonstrate a lack of focus. How does lean content integrate into the rest of the lean product development cycle? If we just sent all our ideas to everyone, whenever we had that idea, it wouldn''t leave room for iteration.

Lean 167

Lean Conversion Audience Design 167

Mike Michalowicz

OCTOBER 1, 2022

Business check point: Are you diversifying your offering, or diluting your company’s impact? Sometimes the more offerings you provide, the more risk for brand dilution, which ends up weakening your business. Not only can your products be less impactful, but the cost or resources to provide them may not result in sustainable profit. .

Dilution 60

Dilution Reputation Product Development Community 60

Berkonomics

MAY 13, 2021

There is a fine line between loading the company with too much debt and diluting the shareholders too early with additional equity investments. Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing.

Dilution 62

Dilution Equity Channel Product Development 62

Berkonomics

MARCH 21, 2019

Later stage investors sometimes look for less, since the business has already proven its capability to stay in the game and has already completed its product development cycle, eliminating more risk for the investor. So, you’ve got to play with the numbers to determine your level of comfort.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Berkonomics

DECEMBER 7, 2023

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch.

Stock Options 62

Stock Options Stock Salary Dilution 62

Berkonomics

MAY 26, 2010

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch. .

Employee 54

Employee Liquidity Event Stock Options Salary 54

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 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

K9 Ventures

OCTOBER 10, 2017

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. So the amount of dilution a company will take on still remains the same over the life of the company.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Seeing Both Sides

NOVEMBER 26, 2012

Adding some debt onto your balance sheet will lower your cost of capital and your dilution, which is better for existing investors and the management team. In other words, being able to efficiently access the capital markets is as core to business-building as product management, go to market and your profit formula.

Balance Sheet 42

Balance Sheet Entrepreneur Dilution Portfolio 42

Early Growth Financial Services

MARCH 1, 2013

Admittedly, bootstrapping has its downside: the biggest drawback being the limit to how quickly you can get your product/service to market and how fast you can execute at a larger scale. Also, without VC funds, you will have less resources to focus on product development.

Bootstrapping 55

Bootstrapping Venture Capital Startup Product Development 55

Startup Lessons Learned

OCTOBER 26, 2009

Anyone who has worked in a real-world product development team can tell you how utopian that sounds. Every time you listen to customers, you fear diluting your vision. Anyone who has worked in a real-world product development team can tell you how utopian that sounds. That’s natural. That’s natural.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

Startup Lessons Learned

JULY 5, 2010

Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles. On the minus side, that has made it a wee bit hard to understand. I think theyve succeeded. The Entrepreneur’s Guide is an easy read.

Customer Development 166

Customer Development Developer San Francisco Customer 166

Startup Lessons Learned

AUGUST 24, 2009

When I reviewed a recent product development book, it immediately shot up to Amazon sales rank 300. And as everyone’s attention starts to focus on those same indicators, their value is being diluted. My blog has over 14000 subscribers, for example. Is that a lot? Is that good?

San Francisco 113

San Francisco Lean Technical Review Distribution 113