May, 2014

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The Economics of a Small VC Fund

This is going to be BIG.

'Two years ago I started a fund. For the fund to be viable, it had to be at least $5 million, but somewhere in the neighborhood of $8-10 million would have been perfect. Thankfully, that''s what I raised--$8.3 million. So how does it work? How does one make money raising a venture fund of this size? Not easily, let me tell you. The benefit comes in the upside, and it''s very back end weighted.

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Why I’m Now Long NPR

Both Sides of the Table

'Anyone who knows me well knows that I have a few brands & media properties that I truly love and for which I have huge loyalty. Virgin America. Uber. USAA. Jon Stewart. Fareed Zakaria. David Brooks. And NPR. NPR has been a part of my life for 25 years. As a news junkie and seeker of information, I’m that guy who always has his car tuned to KPCC everyday to get my daily dose of NPR.

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Customer Engagement Is Key To Branding Yourself

Gust

'The days are gone when a techie or a genius could build things in his garage and customers would find and buy the product, based purely on the “wow factor” of the technology. New technologies are everywhere today. People have seen so much that they are blasé, or actually fear pure technology. They want a personable brand, before they will consider the product.

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Both sides must be fair in a term sheet negotiation.

Berkonomics

'By Basil Peters. After being an active angel investor for about fifteen years, I realized that many of the discussions I was involved in were virtually identical to ones I’d had many times before. A good example was during the negotiation of a term sheet. These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise.

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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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9 Books Every Entrepreneur Should Read

Tomasz Tunguz

Some of the best content to be found about startups is locked in books. Thomas Kjemperud asked me yesterday for a 140 character recommendation of one book for founders. Reducing my list to just one and condensing an argument for why founders ought to read it in just 117 characters was just too great a challenge for me. Instead I’ve written a blog post about the nine favorite books I’ve read over the last five years have helped me understand startups and the processes that make them s

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Founders. Run. Amok. It Starts With a Term Sheet.

This is going to be BIG.

'Last week, for just the second time ever, I passed on an investment opportunity because of the terms of the deal--both the price and the legal structure of the agreement. It was a company whose product I believed in and whose founder I liked, but a firm lobbed in a term sheet at a price 33% higher than what I had offered using a very light agreement meant for a much earlier stage company.

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To My Wife, On Mother’s Day

Both Sides of the Table

'Mother’s Day. The one day a year where we recognize this all important figure in our lives who shapes our childhood providing unconditional love through our successes and failures with encouragement and support through our struggles. I’ve written about my own mom before and the role she played in shaping my life but of course you never quite appreciate the full contributions of Mom until you’re much older.

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Don’t Forget Grants If You Need Early Seed Money

Gust

'In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. A good place to start looking is the Small Business Innovation Research (SBIR) program, which is a lifeline for high-tech startups.

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Can you finance your company with grants?

Berkonomics

'First, here’s a link to my recent TEDx talk, “Smiling at success; laughing at failure.” . I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. The company has been funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all.

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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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A Framework for Maximizing Startup Marketing Effectiveness

Tomasz Tunguz

At a board meeting last week, one of the VPs of Marketing I’m lucky to work with presented a brilliantly simple way of explaining the evolution of a startup’s marketing tactics. I’ve drawn a diagram of the idea above, which borrows heavily from McKinsey’s 3 horizons. Startups have many different marketing options at their disposal: SEO/SEM, print, radio, TV, mail, affiliate, content marketing…The list goes on and on.

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Métricas SaaS 2.0 – Guía para medir y mejorar lo que importa

For Entrepreneurs

'Traducido por Alberto Peralta. “Si no puedes medirlo, no puedes mejorarlo” – Lord Kelvin Este artículo es una visión completa y detallada de los indicadores clave que se necesitan para comprender y optimizar un negocio SaaS. Es una revisión completa y actualizada de un artículo más antiguo. Para esta versión he contado como coautores con […].

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What Something Isn't Worth

This is going to be BIG.

'Dollar Tree. Smucker''s. Uber. If the Bloomberg story is right, all three of these companies are now worth about $10 billion. I don''t know about you, but I''m pretty sure I''d rather own Uber than all of the crappy Dollar Tree stores or a peanut butter company. Plus, I''m more of a almond butter guy anyway. I don''t totally understand why people get obsessed with valuations--especially given that the complete lack of context around a deal.

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What Would Happen if you Built the Reverse of Amazon? It Might Look Something Like This …

Both Sides of the Table

'Amazon. It’s the company that evokes fear into more startups and venture capitalists looking to fund eCommerce businesses than any other potential competitor. Every pitch I’ve ever seen has led to the, “Would Amazon eventually do this? And could we then compete?” type questions. But what if you could do the reverse of Amazon?

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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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Why are some venture capital firms not funding women?

Gust

'The facile answer to this assumptive question is “because some women are not seeking funding from venture capital firms” But there is actually quite a bit of truth in both statements. Women-led ventures definitely account for a smaller percentage of venture investments than do ventures led by men, but women-led ventures also account for a MUCH smaller percentage of ventures seeking funding in the first place!

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And don’t forget creative fund raising.

Berkonomics

'Let me tell you the story of how I raised $100,000 to fill a gap needed to purchase a new home for my young family years ago. I had located a beautiful home that would be a stretch to finance, and had arranged for a first mortgage from the bank, and a second from the seller. Home values were rising so fast that I knew I had to move quickly. So I went to visit a number of customer CEOs, told them my story, and asked them to advance some amount against their future billing from me.

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The 4 Challenges Facing Customer Success Teams in SaaS Startups

Tomasz Tunguz

Yesterday, I spoke on a panel at the Gainsight Pulse conference with Aaron Ross, the author of Predictable Revenue , Jason Lemkin of Storm Ventures who authors SaaStr , and Brian Stafford, a customer success expert from McKinsey. It was great fun to be on the panel and discuss how customer success is transforming SaaS companies by increasing revenue growth, decreasing capital needs, building better products and consequently retaining more customers.

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Métricas SaaS 2.0 – Definiciones detalladas

For Entrepreneurs

'Traducido por Alberto Peralta. Introducción Esta página complementa el artículo Métricas SaaS 2.0 – Guía para medir y mejorar lo que importa. Proporciona la definición detalladas para cada una de las métricas principales que se que se usan en ese artículo. Calculando el LTV y el CAC para una startup SaaS Las finanzas individualizadas son […].

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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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Tinybop and Crafting a Brand

This is going to be BIG.

'I could spend a lot of time writing a long diatribe about what it means to create a brand, or I could just show you three videos that Tinybop , a company I seeded in 2012, made as part of the marketing for their new app, Plants. Consider the bar raised. As a biased investor, I not-so-humbly submit that this is the most creative thing any startup in New York City has ever produced as part of a launch: Plants by Tinybop from Tinybop on Vimeo.

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Why Your Startup is More Likely to Succeed if You’re Authentic and Passionate

Both Sides of the Table

'In my Twitter bio is says that I’m “ looking to invest in passionate entrepreneurs ,” which almost sounds like I was just looking for a cliché soundbite to describe myself. Yet along with “authenticity” they are two of the key attributes I look for when I meet with companies I may consider funding one day. Passion is also the featured heavily in nearly every presentation I give to entrepreneurs or on college campuses or in talks with MBA students.

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7 Steps To Making A Great Entrepreneur Impression

Gust

'Barack Obama meets Mark Zuckerberg, photo via Wikimedia. Entrepreneurs are all about firsts, and the most important is you making a great first impression – on investors, customers, new team members, and strategic partners. Poor first impressions can be avoided, but I’m amazed at the number of unnecessary mistakes I see at those critical first introductions, presentations, and meetings.

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Early stage money: The problem with PPMs

Berkonomics

'By Bill Payne. Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more. He is the recipient of the coveted “Hans Severiens Award form the Angel Capital Association, its highest honor. . The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D).

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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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The Common Language of Great Teams

Tomasz Tunguz

Last week, Redpoint held our annual Founder Day gathering. At the event, I listened to the stories of Felix Baumgartner’s record breaking jump from 120,000 feet, heard about the astonishing comeback of the US America’s Cup team and took part in a creativity workshop led by a Stanford Design School professor. In short, the event revolved around doubt.

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Loving what I used to hate

Derek Sivers

Be careful when you say you like or dislike something, because you could change your mind soon. The first time I heard Tom Waits’s music, when he was a guest on David Letterman , I thought it was so horrible that it must be a joke. Even years later, when I heard him again, I hated his music passionately. But then I heard his cover version of the Cole Porter song “It’s All Right With Me”, and loved it.

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Beer and Startups: The Alcohol Culture of the Tech World

This is going to be BIG.

'I don''t drink. I mean, I consume liquid, but all of those liquids are non-alcoholic. I''m not Mormon. Nor am I an alcoholic. I have no real moral issue with reasonable amounts of drinking--and actually quite envy wine enthusiasts. It seems like a neat and interesting hobby. I just really don''t like the taste. Otherwise, I probably would drink wine.

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10 Ways To Kill A Growing Business With Bad Hires

Gust

'Image via Flickr by Hobvias Sudoneighm. Every startup with any traction quickly reaches a point where they need to hire employees to grow the business. Unfortunately, this always happens when pressures are the highest, and business processes are ill-defined. At this point you need superstars and versatile future executives, yet your in-house hiring processes and focus are at their weakest.

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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.