July, 2014

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10 Entrepreneur Alternatives To Investor Funding

Startup Professionals Musings

'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. I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here.

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A Behind-the-Scenes Look at Our Recent Seed-Stage VC Investments

View from Seed

'Two weeks ago, my partners and I here at NextView Ventures announced our second fund. And since we will continue to look proactively at new seed-stage tech startups over the next few years, the question becomes: What, then, will these companies look like? Rather than merely speculate, a more interesting exercise is to examine what we’ve actually seed funded at NextView recently as a reflection of our current investment interests.

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The Changing Structure of the VC Industry

Both Sides of the Table

'There has been much discussion in the past few years of the changing structure of the venture capital industry. On the surface the narratives have been. The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). The poor performance of the asset class (this analysis has largely been wrong as I pointed out here –> most analyses were clumsy rear-view mirror looks at the data).

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The End Of “Build It Yourself” Software

YoungUpstarts

'By Ralph Dangelmaier, CEO of BlueSnap. On May 7, 1947, Levitt & Sons announced their first rental homes in Levittown, New York. Of the 2,000 homes, more than 1,000 were rented within two days. The Levitts decided to build another 4,000 homes, which they were building at a rate of 30 houses per day by July of 1948. Their assembly chain approach to construction brought in a level of efficiency, cost-savings and quality that was previously unmatched.

Software 248
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Building Healthy Innovation Ecosystems for Your Projects

Speaker: Nick Noreña, Innovation Coach and Advisor, Kromatic

Every startup and innovation project exists within an ecosystem that either helps or hurts that project. As innovation managers, we need to keep a pulse of that ecosystem and make sure we're helping those innovation projects we're managing every step of the way. In this webinar, Nick Noreña will walk through an Innovation Ecosystem Model that he and his team at Kromatic have developed to help investors, heads of product, teachers, and executives understand how they can best support innovation in

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Driving Corporate Innovation: Design Thinking vs. Customer Development

Steve Blank

'Startups are not smaller versions of large companies, but interestingly we see that companies are not larger versions of startups. I’ve been spending some time with large companies that are interested in using Lean methods. One of the conundrums is why does innovation take so long to happen in corporations? Previously Hank Chesbrough and I have written about some of the strategic issues that impede innovation inside large corporations here and here.

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The Key Elements of the Financial Plan

Up and Running

'Digging into your business’s financials can feel a bit like eating your fruits and vegetables, but what’s good for your business’s health is good for you. Financial experts will have different opinions about what should be included in a financial plan, depending on the type of business you have and what you’re trying to accomplish with your business plan.

More Trending

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Do venture capitalists have an ethical duty to startups?

The Next Web

'Janine Yancey is the CEO & President of Emtrain — an organization dedicated to creating user-friendly, memorable and scalable ethics and harassment prevention training for the workplace. Before I get into the “ethical duty” mentioned in the title, allow me to quickly run a few things by you. In the past few months, we’ve seen a number of entrepreneurs at startups make some serious ethical and professional mistakes.

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How does someone get a meeting with angel investor David S. Rose?

Gust

'The most useful meetings with an investor are ones where going in everyone understands that there may actually be a rational reason for the investor to be interested. So even if my own mother asked me to meet with you, and you were pitching me a biotech opportunity for a $10 million investment at a $90 million valuation, I might take the meeting, but it wouldn’t be particularly useful for either of us.

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17 Things You (Unknowingly) Do At Work That Say “I Don’t Care”

YoungUpstarts

'by Jon Gordon, author of “ The Carpenter: A Story About the Greatest Success Strategies of All “ You care deeply about your clients, employees, and coworkers. Of course you do. But if you’re like most people in the workplace (be they leaders, front line workers, or someone in the vast middle ground in between), you may occasionally do (or not do) things that send the wrong signal.

Email 243
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Digital Paralysis

Feld Thoughts

'I heard a great phrase from Jenna Walker at Artifact Uprising yesterday. We had a Blackstone Entrepreneurs Network Colorado meeting with her and her partner and in the middle of the discussion about their business Jenna used the phrase “digital paralysis” to describe one of the things she thinks is driving the incredible engagement of their customers.

Colorado 143
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Funding Sources for Your Nonprofit

Up and Running

'The World Wildlife Fund, which works to conserve the Giant Panda (also featured in their logo), is funded largely by individual contributions. Whether you are thinking of starting a nonprofit, or you are running a nonprofit that is looking to expand, you’re bound to have funding sources on your mind. You probably know everything there is to know about your community or cause, but making decisions about the right approach to handling nonprofit finances can be a challenge.

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Agility Is The Key To Survival In Good Times And Bad

Startup Professionals Musings

'Most small businesses are trying to forget the recent recession, and get back to “business as usual.” They don’t realize that business as usual is gone forever. With social media and smart phone conversations, real product information spreads at astounding speeds. Entrepreneurs that are not listening, not engaging, and not changing will be left behind even in the best of times.

Agile 250
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Twitter Link Roundup #229 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

'Every day on the crowdSPRING Twitter account and on my own Twitter account , I post links to posts or videos I enjoyed reading or viewing. These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Here are some of the links that I’ve liked and shared this past week!

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A Primer to Setting Up Your Own Affiliate Marketing Program

ConversionXL

'Raise your hand if you would like to get extra revenue with an ROI of 1300% , that is for every dollar you invest you get back 14. What if, once the system were set up, it was fairly easy to maintain and continue making more money? I don’t know about you but I would LOVE to have such a system in place. What I’m talking about of course is affiliate marketing.

Affiliate 111
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Case Study: Resolving Airline Engineering Issues Using Videoconferencing

YoungUpstarts

'Airline engineering issues arise due to lack of oversight; methods used for risk management and the use of temporary employees and outsourced specialists. An annual conference is held each year in London to discuss the latest trends, allow key players to meet, adapt new business strategies, understand challenges and solve issues, build relationships and learn best practices for the airline industry.

Engineer 229
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When Vinod Khosla answered my question with a non-verbal

K9 Ventures

'No, not that kind of non-verbal gesture. I believe this was in April 2010 and if memory serves me correct it was an event hosted at the Hiller Aviation Museum in San Carlos by Sand Hill Angels , where Vinod Khosla gave a talk. I was relatively new to the investing world at the time having started K9 Ventures just a year before in April 2009. In his talk Vinod walked through some examples of different companies he had invested in through Khosla Ventures.

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What Should All Entrepreneurs Know Before Starting Their Very First Business?

Up and Running

'Let’s be honest, there’s no ‘one size fits all’ answer to this question. What someone going into an aircraft business needs to know is entirely different to what someone starting a restaurant needs to know. That said, we’re talking about more than industry-specific knowledge. We’re talking about lessons that hundreds of entrepreneurs had to learn before achieving success.

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How To Test The Startup Lifestyle Before You Commit

Startup Professionals Musings

'If you think you are the perfect fit for the entrepreneur lifestyle, but you’re not yet sure if you’re ready to start your own, then I recommend that you take a job with an existing startup first to validate the culture realities against your dream. Without risking all your life savings, you may find that corporate desk you have as an alternative is a lot more satisfying.

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How to Miss By a Mile: An Alternative Look at Uber’s Potential Market Size

abovethecrowd.com

'On June 18, Aswath Damodaran , a finance professor at NYU’s Stern School of Business, published an article on FiveThirtyEight titled “ Uber Isn’t Worth $17 Billion. ” This post was a shortened version of a more detailed post he had written for his own blog titled “ A Disruptive Cab Ride to Riches: The Uber Payoff.” Using a combination of market data, math, and financial analysis, Professor Damodaran concluded that his best estimate of the value of Uber is $5.9 billion, far short of the value re

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How To Create Customer Personas With Actual, Real Life Data

ConversionXL

'When was the last time you took a long hard look at what makes your customer base tick? Think customer personas – those detailed representations of the different segments of your target audience. Fueled by data driven research that map out the who behind the buying decisions of your products or services, customer personas can help inform everything from more effective copy to product development.

Customer 133
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Apple And IBM Bury The Hatchet In The Collaboration Economy

YoungUpstarts

'By Topher Morrison, author of “ Collaboration Economy: Eliminate the Competition by Creating Partnership Opportunities ”. If you need any further proof that the information age is dead and the collaboration age is now in full swing, bitter rivals Apple Inc., and IBM have announced that they are going to be collaborating to create approximately 100 business apps for the iPhone and iPad.

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Sunny Whether: Two Types of Forecasting Models for Running Your Startup

Hunter Walker

'Hey founders, want to hear something incredibly frustrating about seed financing? I don’t believe the forecast you show me. You know the one that inevitably has you at $100 million in revenue by Year Three? Yeah, that one. It’s a great discussion point to understand how you think of your business’ potential but as an operating plan?

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How to Open a Successful Hair Salon

Up and Running

'If your dream is to open a hair salon, now might be one of the best times to do it. According to a report from the Professional Beauty Association, the salon industry is growing. Since the recession, the industry has rebounded and analysts expect continued growth for at least the next five years. While the timing might be right, you’ll still face a lot of competition.

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Small Business and Startups: 7 Habits of Me

crowdSPRING Blog

'Steven Covey started it all with his seminal book, “7 Habits of Effective People.” His work has spawned hundreds of blog posts – a quick search turns up the “21 Habits of Successful Entrepreneurs,” and the “7 Habits of Effective Managers,” even the “10 Habits of Happy Mothers.” All of this exploration of habits and success, habits and effectiveness, habits and happiness led me to ask myself: “Self, I ask, what are your habits?

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Here’s Why a Booming Tech Market May Fool You into Thinking You’re Successful

Both Sides of the Table

'Since 2009 we’ve been in an unequivocal bull market. Venture capitalists have raised increasing amounts of money from their investors (LPs) every year. An impressive number of new VCs have been created – most of them with new seed funds. We’ve had an explosion of alternate sources of financing from crowd-sourcing, angels, accelerators, incubators, corporates, corporate incubators.

Marketing 354
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Google Analytics 101: How To Configure Google Analytics To Get Actionable Data

ConversionXL

'After reading some of our subscriber feedback , we noticed that many ConversionXL readers didn’t have a solid foundation with a proper Google Analytics setup. That’s a problem, because if your analytics isn’t properly configured from the beginning, how could you ever expect to gather any insight? When it comes to gathering visitor information, GA can’t collect or change data on visits that have already happened, which means time spent waiting to add or correct certain settings

Analytics 132
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30 Tips for Great Digital Marketing

Duct Tape Marketing

'30 Tips for Great Digital Marketing written by Guest Post read more at Small Business Marketing Blog from Duct Tape Marketing. It’s guest post day here at Duct Tape Marketing and today’s guest post is from Tara Banda – Enjoy! A man walks into a bar/restaurant/hotel/car repair shop. Chances are, he found it online. That’s because today’s consumers, 80% according to Google , rely more on the Web to find and choose local businesses.

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Oracle DaaS Data-as-a-Service

deal architect

'Oracle invited me to moderate a panel in their DaaS launch today. Watch the whole hour for some great perspectives on this exciting new market category, and our panel starting around 26.00. Talking to Steve Miranda and Omar Tawakol before.

Cloud 326
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What Startups Need to Know About Exit Strategies

Up and Running

'The exit strategy isn’t about you, it’s about your investors. Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. Exit strategies related to startup funding are quite often misunderstood: The “exit” in exit strategy is for the money, not the startup founders or small business owners.

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The Path of Our Lives

Steve Blank

'“ Some men see things as they are and say, why; I dream things that never were and say, why not ?”. Robert Kennedy/George Bernard Shaw. I got a call that reminded me that most people live their life as if it’s predestined – but some live theirs fighting to change it. At 19 I joined the Air Force during the Vietnam War. Out of electronics school my first assignment was to a fighter base in Florida.

Thailand 335
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A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

'I recently attended and presented at Dave McClure’s PreMoney conference in San Francisco. I go every year because I love events hosted & moderated by insiders involving discussions by insiders because it maximizes the amount of real discussions people have. What you’ll see if you watch the video is an unscripted and unfiltered look into how Scott Kupor & I see some of the changes and challenges of the venture industry. tl;dr version.

Valuation 309
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Convert More Visitors By Improving Your Internal Site Search

ConversionXL

'According to eConsultancy, up to 30% of eCommerce visitors will use internal site search. Typically speaking, due to the increased level of purchase intent, are also known to convert sometimes up to 5-6X higher than the average non-site search visitor. Natural language processing software Inbenta mentions in this article a client who noticed their site search customers converted 43% higher, and eConsultancy talks about cases where site search visitors are making up as much as 13.8% of the overa

Search 125
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SEO Blended Copy: Dos and Don’ts for Boosting Your Website’s Organic Discoverability

Duct Tape Marketing

'SEO Blended Copy: Dos and Don’ts for Boosting Your Website’s Organic Discoverability written by Guest Post read more at Small Business Marketing Blog from Duct Tape Marketing. It’s guest post day here at Duct Tape Marketing and today’s guest post is from Maria Orozova – Enjoy! These days, it’s all about organic: organic produce, organic pressed-juice, holistic baby diapers made from all-organic materials – the list goes on.

SEO 77
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The only way to guarantee startup success

A Smart Bear: Startups and Marketing for Geeks

'Everyone said this would be the most embarrassing moment in the band’s eight-year career. Depeche Mode had decided to play the Pasadena Rose Bowl — capacity 60,000 — for the 101st show of their 1988 tour. To sell out would make it one of the largest music concerts ever played in America — highly unlikely for an English electronic band.

Startup 299
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How to Forecast Sales

Up and Running

'Sales forecasting is much easier than you think, and much more useful than you imagine. It’s not about guessing the future correctly. We’re human; we don’t do that well. Instead, it’s about assumptions, expectations, drivers, tracking, and management. You review and revise your forecast regularly. Since sales are intimate with costs and expenses, the forecast helps you budget and manage.

Forecast 119
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How Investors Make Better Decisions: The Investment Readiness Level

Steve Blank

'Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. Other than “I’ll know it when I see it”, there’s no formal way for an investor to assess project maturity or quantify risks. Other than measuring engineering progress, there’s no standard language to communicate progress.