May, 2013

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The One Word That Shouldn’t Exist in an Entrepreneur’s Vocabulary

Both Sides of the Table

'No. The one word the best entrepreneurs never accept. I said it. Now let me walk you through a broader story because avoidance of the word in and of itself will seem cliche. Stay with me. When I was little I had a role model for entrepreneurship – my mom. She was a natural leader. She was president of the UJA in Sacramento. From this I saw civic involvement and leadership first hand.

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Why Communication with Investors is Important

This is going to be BIG.

'Board meetings are a pain in the ass. Unless you''re a well funded, growth stage company that has lots of hands on deck--tons of instrumentation that easily dumps out pretty charts and metrics, or luxury emenities like, well, time, most entrepreneurs probably feel like they could be doing more productive things than telling their investors what they did last month.

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The “buggy whip” trap.

Berkonomics

'Surely you’ve heard the buggy whip analogy. A business making those necessary items ignored the signs of progress and found itself without a market. Perhaps that happened to sword smiths upon the invention of the rifle, and certainly to the makers of cassette tapes upon the dawn of the CD. fast payday loans for every one. I found myself in the middle of such a slow-rolling change twice in my career.

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Investing in the Consumer Web is Dead

Tomasz Tunguz

Reading through the tech press since the Facebook IPO, you might get the impression venture capitalists are still reeling from that apocalyptic offering, believe no further successes can be had in the consumer web, and so are fleeing the consumer web in droves to pursue enterprise investments. That’s because in the past year or so most major tech publications have swung from focusing on consumer products to enterprise companies.

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Navigating the Future: Generative AI, Application Analytics, and Data

Generative AI is upending the way product developers & end-users alike are interacting with data. Despite the potential of AI, many are left with questions about the future of product development: How will AI impact my business and contribute to its success? What can product managers and developers expect in the future with the widespread adoption of AI?

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Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

'Today, Seamless and Grubhub announced the signing of a definitive agreement to merge two of the nation’s premier services for ordering takeout online. As Benchmark is a large institutional investor in Grubhub, we were actively involved in the merger process, and we are quite excited about the potential of the two companies coming together. There are many synergies – different geographic strengths, different core customer bases, and different product strengths.

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More Trending

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The Corrosive Downside of Acquihires

Both Sides of the Table

'For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. And to keep up with the Jones’s it seems that Yahoo! has now employed the same strategy. And who cares, right? A couple of tech giants throw millions around in either cash (for which they have hoards) or part with some publicly traded stock.

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The Best Leftovers Ever

This is going to be BIG.

'Yesterday, I got profiled in Crain''s about my investment philosophies. They do this cool lunch series where they try a new place and profile both a person and a place. We went to Brick , which is a sorely needed lunch spot by City Hall. I made the following comment: "I''ve looked at 2,000 companies, and I''m funding eight. It''s not about picking the eight.

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Manage your bottlenecks!

Berkonomics

'As a manager, you have a number of critical tasks that are general to your position as opposed to specific to your industry. These include ensuring the continued health of the organization, setting the moral compass for your stakeholders, providing for succession by training and documenting, leading the effort in compliance of regulations and safety needs, and … elimination of all possible bottlenecks that impede the efficiency of your organization.

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You Shouldn’t Start an Ad Tech Company, But If You Do…

Tomasz Tunguz

I started working in ad tech in 2005 and during the past eight years, the ad tech ecosystem has progressively become more sophisticated, competitive and oligopolistic. It’s hard to innovate in ad tech. But if you’re looking to start a company in the sector, you’ll need to amass proprietary data or develop a market place with unassailable liquidity to vie successfully in the market.

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Your Fractional Finance and Accounting Team

Mighty Financial specializes in supporting the financial aspirations of small businesses and entrepreneurs. With our comprehensive bookkeeping and precise accounting expertise with decades of experience across diverse financial roles, our team offers tailor-made services ranging from essential bookkeeping to strategic fractional CFO support, catered specifically to the unique challenges of technology companies, startups, and SMEs.

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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

'Rob Bailey is the CEO of DataSift. He wrote a post this long weekend on how he manages the board of DataSift. You should read it. In his post he asserts, “You get the VCs you deserve” and the corollary “You get the performance out of your board that you deserve.” His argument is as follows. Spend time building investor relationship long before you raise money. .

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Why Online Video Just Took One More Big Step to Legitimacy

Both Sides of the Table

'Anyone who reads this blog frequently will know that I am a big believer in low-cost video content and specifically the power of YouTube as a content creation & distribution platform. Our industry just took one big step towards legitimacy with the hiring of renowned media exec Ynon Kreiz to run Maker Studios. The industry finally has one of their own at the helm of the largest YouTube network.

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What Would it Look Like if Elon Musk Pitched a VC Today?

Both Sides of the Table

'This week I attended the All Things D Conference in Ranchos Palos Verdes. It is always a stellar event. The good and great of the tech industry were there: Tim Cook, Sheryl Sandberg, Dick Costolo, Max Levchin, etc. But Elon Musk stole the show. I thought Michael Lazerow’s Tweet best captured the mood of the crowd. I’m sure you know, but Elon was the co-founder (and largest shareholder) of PayPal, the most important payment transfer technology of its era and still the most instrument

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Should You Consider Replacing Yourself as CEO?

Both Sides of the Table

'My internal compass has always steered me strongly toward the belief that founders who can scale with their startup companies are better to back that founders who eventually need to hire a CEO. I have talked about this publicly a great deal – how I prefer “missionaries” over “mercenaries.” But lately I’m more swayed by the wise words of Reid Hoffman.

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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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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

'By now you will likely have read Andy Dunn’s scathing post about Venture Capitalists in which he decries the industry’s masses. I read Andy’s post with a knowing smile on my face. After all, I am no stranger to the publicly expressing the frustrations of dealing with the downside of this industry as I wrote about in 2006 when I was an entrepreneur.

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Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

'When I was new at Venture Capital I was trying to figure out the business. It was a fun period for me because everything was new and I was curious. What kind of deals should I be doing? What stage? What price? With which other investors? Should I focus on geographies or industries? Should I trust my instincts for founders and products or should I be more focused on the market size or business plan?

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The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

'When I was new at Venture Capital I was trying to figure out the business. It was a fun period for me because everything was new and I was curious. What kind of deals should I be doing? What stage? What price? With which other investors? Should I focus on geographies or industries? Should I trust my instincts for founders and products or should I be more focused on the market size or business plan?

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Why We Need to Elect @EricGarcetti on Tues as Next Mayor of Los Angeles

Both Sides of the Table

'On Tuesday Los Angeles will elect a new mayor. And while Eric Garcetti is leading in the polls by 7%, according to recent articles a victory is not certain. LA needs Garcetti. He would be the first tech mayor of our city. He understands our issues as a community and vows to help keep LA Tech on the map. From his opponent I have heard crickets in the past year.

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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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The Damaging Psychology of Down Rounds

Both Sides of the Table

'Yesterday I wrote a post about “ proprietary dealflow for VCs.” In the article I discussed the downside of raising capital at a too high of a price and referred people to a previous article I had written encouraging founders to raise “ At the Top end of Normal ” as opposed to stratospheric prices. In the comments section Siqi Chen wrote a great question. “Whenever I hear advice about pricing a round too high for the next round, I can’t help but think: well, i

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Come Check Out a Very Important LA Tech Event on June 1st

Both Sides of the Table

'Tomorrow LA is hosting an important tech event - please consider registering and coming by. A special thanks to Jason Lehmbeck , founder & ceo of DataPop , a great LA startup of which I have been a long-standing fan, for championing this event and bringing it to my attention. A couple weeks back I laid out the tech case for Eric Garcetti for LA mayor.

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What Playing Dots Can Teach You About Startups

This is going to be BIG.

'I don''t need to explain what Dots is, because you''re already playing it. Don''t lie. In fact, you''re playing it so much, that it better teach you some lessons as a founder, otherwise, it''s probably distracting you from your startup. Here''s a list to defend your high score from your investors: 1) Reset the Board : Don''t fall in love with your first idea.

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Redpoint is Hiring a Consumer Analyst

Tomasz Tunguz

We’re looking for an analyst to join the early stage consumer investment team at Redpoint. This person will help us find and evaluate investments and work closely with the early stage team. If you know anyone who is a recent grad, is passionate about technology and is looking to work hard and learn a ton, please send them our way. Details are below: Job Specification: Redpoint Ventures is looking for a full-time analyst to join our investment team.

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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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Taking Responsibility for the No

This is going to be BIG.

'I hear a lot of funny things about other VCs. This one doesn''t really do early stage, that one doesn''t really get consumer. It usually stems from entrepreneurs who have been passed up on. Often times, I''ve literally just closed on an early stage opportunity with that VC--so I''m quite sure they go early. Beware of the intel you get on VCs from other startups.

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A Startup’s Guide to Maximizing Last Mover Advantage

Tomasz Tunguz

About a year ago, Peter Thiel spoke at a PandoDaily event where he extolled the last mover advantage : “First mover isn’t what’s important — it’s the last mover. Like Microsoft was the last operating system, and Google was the last search engine.”. I hear this refrain more and more in pitches. The thinking goes the last entrant to the market benefit from mistakes made by earlier entrants.

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Elon Musk’s Genius: Understanding the Cost of a Screw and the Value of a Photo

Tomasz Tunguz

Last night, Elon Musk inspired the audience at D. It is hard to overstate the scope and breadth of his ambitions or the impact of his start ups PayPal, Tesla, and SpaceX on payments, automobiles and space. Behind the desire to listen to great men like Musk speak about their perspectives is a hope to receive some insight, some pearl of wisdom. Last night, I came away with two of those both about startups.

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The Future of Human Data Interaction

Tomasz Tunguz

On the day of Tableau’s IPO, a company known for innovating in data visualization, I thought I would share the most impressive HCI concept I’ve seen in a long time. In my view, Bret Victor is on the forefront of human computer interaction design. In the first two or three minutes of this video at Stanford, he demonstrates his home-built software that combines data analysis with visualization.

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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