The only product that makes sense right now is the one that makes dollars.
We all want to believe that in the formative days of a startup, all we should be building is the exact product vision in our heads. We should be turning a blind eye to anything that doesn't directly contribute toward that vision. Everything else is a distraction... right?
While that does sound wonderful, it's not only rare, it's also somewhat delusional. The reality is most startups (who aren't funded) need to focus on building stuff that makes money, regardless of whether it's directly contributing to the product vision. And guess what? Sometimes that winds up being the best product investment we can make.
Let's start with the obvious — we need to get...
There is a ton of hidden treasure in failed startups — you just have to know how to look for it, and ultimately, how to capture it.
After my first (not last) venture-funded startup tanked, everyone pretty much ran for the hills. Investors bailed, the team got other jobs, and customers found better solutions. But I kept thinking "We just spent a ton of money to build all of this, can't I capture this value back?"
Then it occurred to me — the same thing is happening for countless other failed startups. All of the assets that they spent millions to build just get buried. Everyone tries to make a last-ditch effort to sell them off, but in most cases, it never works and they just evaporate.
But what if we were the ones looking to dig up that bur...
TL;DR: "Oh Sh*t!! My competitor just raised a bunch of funding to do exactly what we're doing. We're done for, right? How can we possibly compete with someone who now has the resources to do all of the things we wished we could do?"
Yes, a competitor just raised some funding. No, it probably doesn't matter.
"Wait, what? How could my competitor raising money be anything but my own personal Armageddon?"
Well, it turns out that when the pixie dust settles after those big announcements, our competitors often have a whole new bag of problems to deal with that we don't. We need to look past the upside of that new capital to understand how most funded startups actually sink themselves with an anchor of funding.
The very first t...
Here's a crazy idea — what about a startup that just makes money?
I know, I know — crazy talk! But it turns out that while 1% of the startup world is busy chasing venture capital and trying to create outsized returns, 99% of the rest of businesses are just trying to build a business that consistently turns a profit.
"How dare you question the wisdom of VC!" — echoes the startup world.
But seriously, it turns out even grizzled veterans of the startup world, especially those who have raised venture capital before, are getting really excited about building companies that guarantee a profit versus potentially generating an exit.
It's a confluence of factors, really. When the Nuclear Winter of Funding hit in 2022 and beyond, an aw...
The startup world is all about moving fast — but at what expense?
We've built this narrative for ourselves within startups that we're constantly under the gun to move quickly or else. If we don't move quickly, we won't attract more funding, we'll lose ground to all of our competitors, and we'll be perceived as being "slow," which is considered the death knell for any respectable startup.
But what if all of that is bullshit?
What if there are real costs to moving too quickly that will far outweigh whatever perceived benefits we're told we're getting? We stand to lose a lot if we invent a false notion of urgency that prevents us from making good decisions for the long term.
Let's start with who we're moving fast for. ...
There's a reason the only way to get the "Founder" job title is to start the company — because there's no way to hire for it otherwise.
When I was running my first company, I was in my mid-20s with a hilarious lack of experience. The company was growing quickly, and we went from "a few people in a room" to "a few hundred people in a room," and soon my lack of experience (and pimples) was becoming very evident.
I was scared, so I set out to find a replacement for me, someone who could not only bring more experience but more confidence to the staff in executive leadership. We found an "old guy" who, at the time, I think was maybe 38, probably less, but he had some gray hair and was orders of magnitude more mature than the lot of us.
When times are good at our startups, we think it will never change; when times are bad, we think it will never change.
Yet the only constant with startups is change.
The challenge for many Founders is that this is likely the first time we've had good or bad times, so we have yet to see a full cycle. That makes it difficult to know whether this is a short-term blip or a long-term trend. As such, we tend to grossly overcompensate by spending too much in good times and running for the hills in bad times.
We all have this fantasy that our startups constantly grow "up and to the right!" on our beautiful charts. The reality is way different. The best way to think about our startup journey is a constant cycle of "feast o...
What if I told you that selling a company for $40 million could net you more money than if you sold it for $200 million?
On its face, it sounds ludicrous, I know! But what's missing in that formula isn't the exit price, but how much of that exit we get to put in our pocket as we raise more rounds of capital.
More importantly, our opportunities to sell for $40m are dramatically more abundant than selling for $200m (or more!). That means every time we raise capital, while it sounds like we're improving our chances of an outcome, we're also reducing our options to find an exit at all.
CapShare released a study of 5,000 startup cap tables to determine how much equity Founders have at each stage of a funding round. ...
Tap into the power of startup communities to help you take your ideas and business plans further. These incredible networks offer a wealth of resources, mentorship, and networking opportunities that can be invaluable when starting out on an entrepreneurial venture.
In this blog post, we will look at why these innovative startup ecosystems are so important in America, as well as explore options for international entrepreneurs who want to access these global community support structures too. Finally, early-stage investor input is discussed with tips shared on how best to navigate through the process successfully!
Startup communities provide powerful resources and connections to help entrepreneurs succeed.
Explore the vibrant startu...
Businesses need to be able to access capital for growth and stability, which is why understanding the different approaches to raising funds is essential. This blog post provides an in-depth guide on analyzing, comparing, and applying various methods of obtaining funding so that companies have the ample financial resources they require.
Understanding the importance of capital raising and different methods available to businesses.
Evaluating pros & cons of equity financing vs debt financing, as well as innovative strategies such as crowdfunding, peer-to-peer lending, and strategic partnerships.
Attracting investors by crafting a compelling pitch, building a strong network & demonstrating past successes. Plus preparing for capital ra...