August, 2012

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Minimum Viable Team

This is going to be BIG.

You have a million things to get done at your startup, yet you only have a handful of people to do them. How are you ever going to get it done? Who should you hire? What should be the makeup of a founding team? What is the Minimum Viable Team, if you will, for a startup? To make life simpler, I'll take a page from George Carlin, who masterfully widdled down the Ten Commandments down to two simple rules.

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Is Silicon Valley Really Coming to an End?

Both Sides of the Table

By now you probably know that David Sacks , co-founder of PayPal and founder of both Geni & Yammer made some observations on Facebook that Silicon Valley “as we know it” was coming to an end. He says. “In order to create a successful new company, you have to find an idea that. (1) has escaped the attention of the major Internet companies, which are better run than ever before; (2) is capable of being launched and proven out for ~$5M, the typical seed plus series A investmen

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Sprint Like An Egyptian: A Tech Entrepreneurship Revolution in Alexandria

Gust

At the threshold of one of the most recognizable landmarks in human history — the sole survivor among the Seven Wonders of the Ancient World , dating back nearly five thousand years — my host was engaged in heated debate with a rotating phalanx of functionaries. As our group sweltered in the July heat on the outskirts of Cairo , each of these purported minions of the state — none of whom wore a uniform or badge — in turn blocked our entry, determined to exercise the modest amount of authority b

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The Virtual Manager: It’s all about your performance.

Berkonomics

It is hard to hide incompetence behind appearance or personality when you are a virtual manager. In a virtual environment, people measure you mostly by your actions, and remember only the most recent good work you’ve done for them and for the organization. Today, many companies hire great managerial talent who commute from a remote home location. Often, such senior managers start with a four-days-here, one-day-from-home plan that slowly degrades to two then sometimes three days operating remote

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Digitalization: 5 Tech Updates That Will Help You Survive The Recession & Thrive

Lack of digitalization decreases business competitiveness. To thrive, embracing modern solutions becomes essential. The approach to digitalization often aligns with a company's business model. This shift not only boosts productivity but also automates processes and improves security. The tech market offers a wealth of technologies tailored for management, planning, and forecasting, replacing outdated pen-and-paper methods.

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The tension between predictability and creativity

Tomasz Tunguz

In every one of my conversations with Peter Lehrman, founder of AxialMarket, he always speaks about AxialMarket as “the business.” Never the company, the startup or any other word. At first blush I thought it was a trivial semantic difference, a New York-ism, but over time I’ve come to realize this word choice marks a significant difference that manifests itself in culture, product and go to market.

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Admitting that you have no idea what you're doing

This is going to be BIG.

Most entrepreneurs aren't qualified for their jobs--including about 100% of the first timers. Many times, they get backed just because they're smart people working in an interesting area. Sure, they had a demo or a prototype or something, but investors know the product will change. What they're really betting on is your ability to learn--and that starts with your willingness to admit the following: "I don't know what to do.".

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Trello versus Asana

Both Sides of the Table

For the past several years I’ve undertaken many initiatives to “get more organized,” which basically means to make another attempt at implementing and running a solid task list that I can share with others with whom I collaborate. I seem to be really good at kicking off well-structured lists, but less good at “working them.” I know there’s no real point in creating a task list if you’re not actually going to open it up and parse through tasks.

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These 10 Key Elements Make a Business Plan Fundable

Gust

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Things that make it investment-grade for outside investors will also benefit you, since you are the ultimate investor.

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Using Surveys to Validate Key Startup Decisions

For Entrepreneurs

Summary This article describes in detail how to use on-line survey tools to validate your key startup assumptions, and gain actionable insights into topics such as pricing, target demographics, messaging, etc. Introduction By now pretty much every entrepreneur knows the basics of Lean Startup methodology: start by searching for product/market fit. Get out of the [.].

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The Big Payoff of Application Analytics

Outdated or absent analytics won’t cut it in today’s data-driven applications – not for your end users, your development team, or your business. That’s what drove the five companies in this e-book to change their approach to analytics. Download this e-book to learn about the unique problems each company faced and how they achieved huge returns beyond expectation by embedding analytics into applications.

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Consumer investment fatigue

Tomasz Tunguz

Many of the promising marketing and media innovations of the past six years, daily deals, subscription ecommerce, social gaming and social media, have been struggling. This trend is plain to see from IPO performance and negative press cycles. I’ve been asked a few times whether there is consumer investment fatigue as a result. Fatigue is too strong a characterization.

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How Facebook maximized the IPO proceeds, but botched the process

Don Dodge

Most companies leave a lot of money on the table when they IPO. They price at $12 to $15 per share at the IPO and trade up to $20 - $25 on the first day, and up to $30 to $40 over the next few months. Investors are happy. The press is writing positive stories. Everyone is happy. But, the company left all that money on the table, the difference between the $12 IPO price and the $25 first day close.

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The Last Coder

This is going to be BIG.

If anything has held true about the progress of technology over the last 150 years, it is that one generation's bread and butter tasks become automated and the skill level requirement for participating successfully in the workforce is forced up. We've seen disruption by machines among all sorts of human labor, particularly in the area of "making stuff".

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How Much Information Should you Give VCs for Due Diligence?

Both Sides of the Table

This is a hot topic I’ve been asked a lot about recently. You’re on a first date with a VC – how much should you tell them? You’re heading into a full partner meeting and you’ve been asked for a full data pack before – should you give it? When is it appropriate for a VC to call your customers? There is no universal answer and my discussions with various VCs on these topics have yielded many differing opinions.

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PE Mastery: CAPTARGET's Playbook for Quality Lead Flow

CAPTARGET presents a masterclass in M&A deal sourcing. Learn to cast a wide net, embracing seller self-identification. Consistency is the linchpin: keep the origination process steady for a reliable flow of opportunities. Diversify your tactics, employing various tools and vendors. Tech matters! Understand DNS settings, domain authority, and brand presence for optimal outreach.

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Do most angel investors make money?

Gust

The reality is that results in angel investing tend to bifurcate: “Professional” angel investors, who are investing calmly, steadily, relatively-rationally, over a long period of time and with a strong knowledge of both investment math and early stage realities, tend to not only make money, but do quite well: the average return for a comprehensive, well-managed angel portfolio is between 25% and 30% IRR.

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Two most powerful words: “Help me.”

Berkonomics

Over the years I have heard many stories from entrepreneurs, students, news reporters, even my children, all telling me that they could not get someone’s attention they wanted or needed until they used the words, “Help me.” The simple request is disarming, enlarging the object of the request to a status of importance in respect to the questioner that is difficult to ignore.

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Radio Ga Ga

Tomasz Tunguz

Must content distribution platforms be reinvented every few years? Left to its own devices, the mob will augment, accessorize, spam, degrade and noisify whatever they have access to, until it loses beauty and function and becomes something else. Seth Godin. Given the noise and misinformation disseminated on Twitter both during the election and the Sandy disaster , I’ve been wondering how Godin’s thoughts apply to new information networks: blogs and feeds.

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Push, push, push. Expanding your comfort zone.

Derek Sivers

I’m 40 meters underwater. It’s getting cold and dark. It’s only the third dive in my life, but I’m taking the advanced scuba course, and the Caribbean teacher was a little reckless, dashing ahead, leaving me alone. The next day I’m in a government office, answering an interview, raising my right hand, becoming a citizen of Dominica. I’m backstage at the TED Conference, about to go on, but I can’t remember my lines.

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How to Stay Competitive in the Evolving State of Martech

Marketing technology is essential for B2B marketers to stay competitive in a rapidly changing digital landscape — and with 53% of marketers experiencing legacy technology issues and limitations, they’re researching innovations to expand and refine their technology stacks. To help practitioners keep up with the rapidly evolving martech landscape, this special report will discuss: How practitioners are integrating technologies and systems to encourage information-sharing between departments and pr

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Why Blog?

This is going to be BIG.

I've now been blogging for eight and a half years and it's undoubtedly my most valuable career asset--but not just for its reach. It has a number of ancillary benefits that a lot of people who don't blog might not realize. I was teaching a General Assembly class the other day on careers and I talked about what blogging does for me, and I don't think I'd really ever encapsulated it in a way that I could advocate to others.

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Should You Really Sit on Other Boards When You’re a Startup Founder?

Both Sides of the Table

I recently read Brad Feld’s thought provoking piece encouraging founders to sit on the board of another startup company. I found it thought provoking because I’ve always believed startup founders need extreme focus on only their company to succeed. We live in an era where the press espouses the entrepreneurs who have five startups. I’m not one who has subscribed to the “superman founder” narrative.

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Investors Know A Product Doesn’t Make a Business

Gust

Why is it that most of the business plans I see are really product plans? I define a product plan as a detailed description of your product or service, with a bit of business thrown in at the end. A business plan is a detailed description of your business, with a bit of product description thrown in near the front. Don’t get me wrong. It’s definitely positive to have a product plan.

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Hire for your core. Partner for the rest.

Berkonomics

There is a major trend shaping up that is worldwide, already identified by hundreds of thousands of startup and small business CEOs. By carefully recognizing and focusing upon the very core of the business, these CEOs are allocating their scarce cash resources to hire the best talent they can find to support that core business, and then reaching out to partners, independent contractors, and other small businesses to provide all other functions.

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Statement of Cash Flows vs. Cash Flow Statement

Speaker: Wayne Spivak - President and Chief Financial Officer of SBA * Consulting LTD, Industry Writer, and Public Speaker

The old adages that "cash is king" and "you can’t spend profits" still hold true today. But however well-known these sayings might be, it requires a change in mindset to properly implement a cash flow management system that predicts your business's runaway as accurately as possible. Key to this new mindset is understanding the difference between the Statement of Cash Flows, a historical look at the source and uses of cash, and the Cash Flow Statement, which uses transaction history and forward-l

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On negotiation

Tomasz Tunguz

We negotiate every day in almost every conversation and exchange, whether it’s rescheduling a flight, asking for a product return or responding to a term sheet. I’ve been reading Getting More , a book by Stuart Diamond, who trains the military, Google and many others on negotiation. Everyone should read it. This book is set apart because it recognizes the nature of relationships, emotion and human nature, forgoing concepts like ZOPA and BATNA.

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Curiosity: A six wheeled hero we can all get behind #msl

This is going to be BIG.

There are five people with more Twitter followers than the President of the United States: Lady Gaga, Justin Bieber, Katy Perry, Rihanna, and Britney Spears. We're a little short on heroes these days, if you haven't noticed--especially ones whose paths we probably want our kids to emulate. This isn't to take anything away from anyone pursuing an entertainment career--because what we have here is something entirely different.

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Rethinking Board Observers – The Role of the “Silent Observer”

Both Sides of the Table

It has always surprised me that founders were so quick to fight over how many board members there were and so quick to agree to have as many board observers as people wanted. I have always been vehemently against board observers and wrote some of the reasons in this previous post. But over the past couple of years I’ve slightly modified my views, which I’d like to explain: The Case Against Board Observers.

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Want to Know How to Better Partner With, Raise Money From or Be Acquired by a Big Media Company?

Both Sides of the Table

This is one of the best episodes of This Week in VC for a long time. I had the chance to speak with Andrew Siegel who runs corp dev & strategy for Condé Nast (aka Advance Publications). In case you don’t know, they are one of the biggest media companies in the world. They are best known for their magazine titles such as The New Yorker, Wired, Vanity Fair and Vogue.

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How to Avoid the Pain and Cost of PCI Compliance While Optimizing Payments

Speaker: P. Andrew Sjogren, Sr. Product Marketing Manager at Very Good Security, Matt Doka, Co-Founder and CTO of Fivestars, and Steve Andrews, President & CEO of the Western Bankers Association 

PCI compliance can feel challenging and sometimes the result feels like you are optimizing more for security and compliance than you are for business outcomes. The key is to take the right strategy to PCI compliance that gets you both. In this webinar, we have a great set of panelists who will take you through how Zero Data strategies can be used as part of a well-rounded compliance and security approach, and get you to market much sooner by also allowing for payment optimization.