Why Tech Startup Investors Expecting Revenue are Wrong
Monday, 04 April 2016
A far too frequently overheard conversation in the startup community goes something like this: “Apparently neither Instagram nor Snapchat had paying customers while receiving both seed and series A funding?! I couldn’t believe it. Investors, advisors, and incubators these days are constantly trumpeting that a monetization model (or at least an anticipated revenue trajectory) is
- Published in Startups
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Startup Validation in 12 Steps (Hint: It’s Not About Sales)
Monday, 17 August 2015
Among the most cited frustrations by entrepreneurs that can’t get funding, is that they have customers and sales, and that they’re being encouraged to get more. And yet… As we explored in a previous post (“Should I be raising money?”), with the utmost deference and respect to investors, the worst advice you might hear from
“Should I be raising funds?”
Friday, 07 August 2015
It’s a question asked so frequently, in a variety of different ways, that it finally occurred that it would be a good discussion to have. Should you be raising money? Of course the cop out is to reason that of course one should; you have revenue, customers, and you’re growing but you just can’t get
- Published in Raising Capital
When Raising Capital, What is a Broker-Dealer Registered with the SEC?
Friday, 19 December 2014
With the advent of crowdfunding and the ongoing changes to how startups might raise capital, prompted by the JOBS Act, entrepreneurs are frequently asking about the role of a broker-dealer. Why? Let’s start from the beginning with an understanding of what exactly is a broker-dealer An individual, company, or organization that trades securities (a catch-all term
- Published in Raising Capital, Startup Ecosystems
How are Startups Getting Funded without Revenue?!?
Thursday, 30 October 2014
Asked the other day, having witnessed the success of WhatsApp, “how are these companies getting funded when they don’t have paying customers?” It’s a good question, but frankly too, one that for many of us, actually doesn’t make sense. Most innovation gets funded without revenue so I’d ask in return, what makes you think you
- Published in Startups
Raising Capital: The Perfect Startup Pitch
Tuesday, 06 May 2014
Having been a part of, easily, over 100 venture pitches, it’s hard not to put myself in the shoes of the venture capitalist; listening to entrepreneurs talk about their ventures as though I intend to invest more than I could possibly manage. The marketer in me, having listened to far more pitches than I’ve given,
- Published in Featured, Raising Capital, Startups
What It Takes To Raise Money
Wednesday, 09 October 2013
Yesterday, I had the distinct honor of hosting a topic of discussion during the first conference focused on the convergence of mobile, gaming, entertainment, and entrepreneurship. I started by remarking that the name of the conference, Captivate, could not have been more appropriately chosen by Jennifer Bullard and Suzanne Freyjadis as the very responsibility of
- Published in Startups