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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. A liquidity event means that the equity (the stock) you sold your investor can now be converted into cash.) You’ve been funded to get to a liquidity event.

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Why good people leave large tech companies

Steve Blank

The belief then was that most founders couldn’t acquire the HR, finance, sales, and board governance skills rapidly enough to steer the company to a liquidity event, so they hired professional managers. Yet technology cycles have become a treadmill, and to survive startups need to be on a continuous innovation cycle.

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How to Fund Your Startup Without Losing Control

Up and Running

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Proposed private equity deal: Eventually, this business will require private equity to provide sufficient funding to develop some of the more robust aspects of the technology that will attract Fortune 500 clients.

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Have you heard the rule of the thirds?

Berkonomics

How many of them, particularly in technology, were able to start a company, supply all the funding, and share no management tasks or equity with others, and still grow the company to any significant size, worthy of a multi-million-dollar opportunity to cash out at exit? It starts with sharing the opportunity and upside.

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Why Pitching Your Product Is Not Enough For Investors

Startup Professionals Musings

As a technology buff, I’m all too sensitive to the common investor complaint that technical people often end up selling yet another “solution looking for a problem,” because they are so impressed with their technology. Your solution may include leading technology, but if available to competitors, the lead won’t last.

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Do It Right The First Time: Avoiding “Janitorial” Legal Work

Gust

In most cases, the answers are (1) an outstanding product or technology; (2) a successful growth business built around that product; and (3) a top-notch team to build and execute the business. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

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Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

Steve Blank

Number of Venture Backed Liquidity Events 1991-2000. The public markets for venture-backed technology stocks never really recovered after the collapse of the dot-com boom. Number of Venture Backed Liquidity Events 2000-2010. Other VC’s who invest in Information Technology have taken a different approach.