Startup Professionals Musings

MAY 25, 2020

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Startups with no exit planned will minimize investor returns. Most entrepreneurs like the startup role, but not the big-company role. Yet one of the first things a potential equity investor asks about is your exit strategy.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

MARCH 6, 2021

Many startups fail before reaching that magic “cash-flow positive” position they have been striving for, despite seemingly reasonable financial projections. Many startups see initial revenue from customers, and love the fast growth, but fail to anticipate the cost of early vendor payments, monthly overhead costs, and later taxes.

Technical Review 379

Technical Review Finance Startup Salary 379

Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? There was no money train.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

SEPTEMBER 17, 2021

Then every startup has to learn to pivot, because their first understanding of the real problem is usually not quite right. With the best solutions, the customer gets value which exceeds your revenue. That mentality has to be part of the culture of every startup team member from the start. No pain usually means no sales.

Sales 348

Sales Startup Bootstrapping Technical Review 348

Startup Professionals Musings

DECEMBER 5, 2021

Some startups not only ignore this and don’t budget for it, but they actually plan on the free viral marketing to generate enough revenue from click-through advertising to fund operations and future growth. That’s a double death wish. Marty Zwilling.

Viral 348

Viral Marketing SEM Campaign 348

TechEmpower

JULY 31, 2023

When talking to startup founders or other innovators, we always ask questions to better understand their business as a core. R : Revenue - Can you monetize any of this behavior? Conclusion Startup metrics are an invaluable tool for founders and innovators. Focus on building an MVP to gather startup metrics.

Metrics 260

Metrics Startup Retention Acquisition 260

View from Seed

NOVEMBER 18, 2020

One of the most highly anticipated startup IPOs of recent years, we now get a peek inside Airbnb’s business. You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment.

North America 401

North America IPO Prospectus Europe 401

Startup Professionals Musings

APRIL 4, 2022

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. Join a startup incubator. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

VC Cafe

MARCH 1, 2024

Most startups equate the process of fundraising to dating – founders have to typically kiss a lot of frogs until the find the right fit. Climate tech – We have a fair chance of avoiding catastrophic climate change if startups offer commercial solutions to decarbonize society or remove carbon from the atmosphere.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

JUNE 26, 2020

The most common business entity used for startups is a Limited Liability Corporation (LLC), which is the cheapest and simplest to manage. All startups, including non-profits, need revenue to thrive, such as such as from subscriptions, retail, online, licensing, or services. They want to see revenue to share in the return.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

FEBRUARY 14, 2022

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

AUGUST 17, 2020

In my experience, consummate entrepreneurs tend come up with more startup ideas than they can ever implement, and some of the ideas may not even make business sense. Passion, optimism, and determination are necessary but not sufficient to assure a successful startup. Most startup projects require special skills and a motivated team.

Technical Review 434

Technical Review Due Diligence Intellectual Property Internet 434

Startup Professionals Musings

AUGUST 23, 2020

Entrepreneurs who experience success with their first startup are often amazed to realize that the risks and fears of doing it right the second time go up, rather than down. Encores are tough, especially in the high-risk world of startups, yet every entrepreneur I know can’t wait to start over and do it again.

Technical Review 324

Technical Review Entrepreneur Due Diligence Business Model 324

Steve Blank

JANUARY 17, 2023

Three types of organizations – Incubators, Accelerators and Venture Studios – have emerged to reduce the risk of early-stage startup failure by helping teams find product/market fit and raise initial capital. They do the most to de-risk the early stages of a startup. Reducing Startup Risk.

Technical Cofounder 368

Technical Cofounder Intellectual Property Technical Review Incubator 368

Startup Professionals Musings

APRIL 14, 2021

For example, my dictate that entrepreneurs need to find a “ painful ” problem to solve (such as high cost, low productivity) to attract customers, doesn’t really account for many successful startup businesses today, including top social media platforms, dating sites, and new fashions. Build positive relationships with potential customers.

Customer 432

Customer Social Media Dividend Technical Review 432

Startup Professionals Musings

NOVEMBER 23, 2020

Experiments on today’s revenue engine necessarily focus on short-term financial goals. On the other end of the spectrum, technology startups also really need this mentality, since the rate of change there is rapid, and competition is so intense. Sponsor experiments and measure like new investments.

Framework 402

Framework Engineer Leadership Revenue 402

Startup Professionals Musings

NOVEMBER 2, 2022

As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Even non-profits need revenue to cover their costs, and continue to provide services. Find a strategic partner to accelerate growth.

Forecast 304

Forecast Stock Options Technical Review Metrics 304

This is going to be BIG.

JUNE 17, 2024

If you’re a Black female founder with revenue struggling to raise and you see two straight white dudes get $5 million for their Powerpoint presentation, it’s only logical to assume the process is stacked against you. doesn’t really buy you many points with an investor—but coming off like a startup n00b really tanks your chances.

Technical Review 165

Technical Review Cofounder Startup Equity 165

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 434

Revenue Valuation Viral Retention 434

Hunter Walker

OCTOBER 14, 2024

I was working at a venture-backed apparel startup for 4 years and saw the power of building digitally-native brands through Facebook and Instagram (TikTok was still nascent). Here are Five Questions with Sandro. Hunter Walk: Backstory time! Tell us a bit about Sanzo and how it was founded? Sandro Roco: I had the idea for Sanzo in 2018.

New York City 107

New York City Hockey Stick Distribution Angel Investor 107

YoungUpstarts

JANUARY 10, 2020

When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. This is especially true for startups, which operate on the basis of customer traction to solidify expectations with investors or lending institutions. Work to win them back.

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

Startup Professionals Musings

OCTOBER 22, 2021

Generate revenue around the clock. Focus on recurring revenues. With a stable base of subscribers, this can mean a continuing revenue stream from newsletters, support, or advice on demand. Provide website forums to help customers solve their own problems. Use the Internet to outsource staff.

Technical Review 312

Technical Review Software Review Internet Revenue 312

The Startup Magazine

JANUARY 5, 2025

Whether you are trying to increase your revenue or improve your customer satisfaction, taking your business to the next level means looking at all of your strategic opportunities. The post How to Elevate Your Business to the Next Level appeared first on The Startup Magazine. This is what is actually going to make you achieve it.

Software Review 147

Software Review Technical Review Retention Campaign 147

Startup Professionals Musings

OCTOBER 30, 2020

Most of you prefer to ignore the feedback from analysts that your chances of creating the next unicorn startup may be as low as one in five million. You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. The big question is how you can beat these odds.

Merger 386

Merger Software Review Acquisition Social Media 386

Both Sides of the Table

SEPTEMBER 15, 2022

At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. Should SaaS companies trade at a 24x Enterprise Value (EV) to Next Twelve Month (NTM) Revenue multiple as they did in November 2021? And it WILL be deployed, that’s what investors do.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

VC Cafe

MARCH 16, 2025

Mention that you do “Consumer tech” as a startup founder and you’d be limiting your funding options to one third of the venture capital funds (in Israel that figure is probably closer to 10%). Despite the renewed potential offered by AI, consumer startups still need to overcome significant challenges.

Technical Review 78

Technical Review B2C Generative AI IPO 78

The Startup Magazine

JUNE 20, 2024

When it comes to B2B startups, effective marketing can make or break a company’s early growth trajectory. With limited resources and high stakes, startups must be strategic about every decision, particularly when it comes to marketing. One increasingly popular strategy is to hire a fractional chief marketing officer (CMO).

B2B 148

B2B Hiring Salary Early Stage 148

The Startup Magazine

JANUARY 21, 2025

These partnerships can lead to innovative solutions and revenue opportunities for all parties involved. The post Opportunities in Transport Business Ownership: What You Need to Know appeared first on The Startup Magazine.

Technical Review 144

Technical Review Government Operations Demand 144

Steve Blank

APRIL 1, 2020

So here’s a five-day playbook to help CEOs of cash-flow negative startups, or ones about to go negative, assess the new normal and respond with speed and urgency. Your revenue plans are no longer valid. For companies burning cash, such as startups, how much cash do you have? For startups: source of VC money?

South Korea 334

South Korea Salary Business Model China 334

Startup Professionals Musings

OCTOBER 26, 2022

Bureaucracy can appear quickly in startups as well as large companies. Business agility is simply to ability and intent to make small changes, on a daily basis, to penetrate new markets, add new revenue streams, reduce costs, and prune out products that are no longer carrying their weight. The real problem is inflexible people.

Agile 379

Agile Technical Review Leadership Social Media 379

Startup Professionals Musings

FEBRUARY 25, 2023

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Startups with no exit planned will minimize investor returns. Most entrepreneurs like the startup role, but not the big-company role. Yet one of the first things a potential equity investor asks about is your exit strategy.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Excellent detailed resources are everywhere, including a classic book, “ The Startup Checklist ,” by serial entrepreneur and founder of the New York Angels, David S. Incorporating a business entity early through online services.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

JUNE 2, 2021

Short-term earnings per share may be low, even as revenues and cash burned are high. In many cases, growing the ecosystem is so important that your best competitive move may be to invest in facilitating “competition,” such as Tesla Motors giving away their battery patents to other auto providers, without royalties, to build the ecosystem.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

MAY 19, 2023

Entrepreneurs who experience success with their first startup are often amazed to realize that the risks and fears of doing it right the second time go up, rather than down. Encores are tough, especially in the high-risk world of startups, yet every entrepreneur I know can’t wait to start over and do it again.

Technical Review 229

Technical Review Due Diligence Business Model Demand 229

Startup Professionals Musings

MAY 13, 2023

In my experience, consummate entrepreneurs tend come up with more startup ideas than they can ever implement, and some of the ideas may not even make business sense. Passion, optimism, and determination are necessary but not sufficient to assure a successful startup. Most startup projects require special skills and a motivated team.

Technical Review 267

Technical Review Due Diligence Intellectual Property Internet 267