June, 2014

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The Business of Who Makes is Changing

This is going to be BIG.

'The 1970''s was a boom for minicomputers. Minicomputers were "midrange" machines that were used in all sorts of industrial applications--manufacturing process control, telephone switching and to control laboratory equipment. " In the 1970s, they were the hardware that was used to launch the computer-aided design (CAD) industry ," according to Wikipedia.

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Why I Doubled Down on YouTube Investments with MiTú

Both Sides of the Table

'Yesterday MiTú Networks announced that Upfront Ventures led a $10 million financing in what is now the largest producer of Latino online videos – primarily driven through YouTube. As you may know we co-lead the first round of financing of Maker Studios, the largest overall producer for online video content, along with Greycroft Partners. I was an early and tireless advocate for the growth of the Internet video ecosystem and as virtually every article I wrote made clear I believe the 800-

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High Performing Virtual Teams Have 8 Key Attributes

Gust

'Virtual Team meeting image via Wikimedia blog. Almost every startup is a virtual team these days, since most don’t start out with dedicated office space, and some or all members of the team work part-time or out of their own home. It’s a small world, so these team members may not even be in the same town, or the same country. Outsourcing is just another extension of the virtual team concept to people you don’t even know.

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Turn the tables: What’s an angel look like?

Berkonomics

'Angel investors, particularly those in organized angel groups, are typically former entrepreneurs who have had successful liquidity events in their pasts, or executives of companies who’ve retired with the funds from their stock options. Occasionally, an angel is a member of a wealthy family, having little experience managing a business. But most often these angels are skilled at growing companies, calling on their past experience to evaluate and then help entrepreneurs in their early s

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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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Disrupting Finance From Above: Wealthfront

abovethecrowd.com

'Many entrepreneurs in Silicon Valley believe that the financial services industry in the United States is “ripe for disruption. ” The basis of this argument is really two fold. First, they believe that the current offerings from the financial incumbents are lacking. They would argue that credit card fees are too high, that there is a lack of true competition amongst American financial institutions, and that the ACH process is borderline asinine.

More Trending

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The Strong Rejection

This is going to be BIG.

'When I turn down the opportunity to invest in a startup, I really turn it down. I try and say exactly what I don''t believe will happen, or why I don''t believe in what you''re doing. In essence, I''m setting myself up to either be spectacularly wrong or to be right. The last thing I want is to not have a view on the space. My job is to have views--because not making a bet is making a bet.

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Why Venture Capital is So Much More Compelling Now

Both Sides of the Table

'It’s not hard to find people willing to write the narrative that “venture capital is not an asset class” or “venture capital has performed terribly.” The most recent was 18 months ago or so called The Kauffman Report. It had an influence on the people who fund our industry in a negative way as many asset managers who fund our industry read this flawed report.

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How True Entrepreneurs Make Themselves Accountable

Gust

'Image via Wikipedia. Everyone seems to like the aspect of being an entrepreneur that goes with “being your own boss” and “able to do things my way.” But sometimes they forget that this kind of freedom comes with a price of personal accountability. Accountability means “the buck stops here,” and “all the failures are mine.”. Too many people seem to do whatever it takes to avoid accountability, both before and after the fact.

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Hugh opportunities do NOT command amazing pre-money valuations.

Berkonomics

'Dave’s note: Popular Bill Payne returns this week with a thoughtful take on valuations. By Bill Payne. One entrepreneur has a company which appears to be scalable to a $30 million exit value in five to eight years, and a second entrepreneur’s venture seems to be scalable to $200 million in exit value in the same time frame. Yet, at the pre-revenue stage of development, angel investors price both companies at a pre-money valuation of $1.5 million.

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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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Welcoming Jason Kilar, Richard Tom and the Vessel team to the Benchmark family

abovethecrowd.com

'Today Benchmark is excited to announce that we will be partners with Jason Kilar and Richard Tom on their next exciting project — Vessel. Working with amazing entrepreneurs is the number one reason we enjoy venture capital, and rarely do you have the opportunity to work with a team that has a track record like these two. While they are not planning to disclose any specifics today about the company, you can rest assured that they plan to bring their amazing product instincts and cultural leaders

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How Much Should Your Startup Spend to Grow?

Tomasz Tunguz

Several weeks ago, I wrote a post about the Optimal Contract Value for a SaaS company. I wondered whether startups serving enterprises might be more or less valuable than those serving small-to-medium businesses (SMBs). Interestingly, the data showed there was no optimal customer value to build a publicly traded SaaS company. Having written that post, I began to wonder about other differences between different types of SaaS companies.

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How early should you connect to a VC? Here's some data.

This is going to be BIG.

'How long does it take from first meeting a VC to getting cash in the bank? That''s an interesting question. Theoretically, someone could meet you, sign your document, and write you a check for deposit that day, but that''s not how it usually works. It''s also not the best way to create a helpful syndicate of investors that share the founder''s vision for the company.

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The Power of Getting the Band Back Together

Both Sides of the Table

'Startups are hard. You’ve heard that a million times. Those that we survive with become family. It’s something you can’t know unless you’ve ever been in the trenches. Working hard together at a big company just isn’t the same. The truth is you really don’t know how your teammates or your bosses will perform in good times and bad.

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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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What are the best New York City events to attend to meet VC’s and Angel investors?

Gust

'This is a somewhat tricky question. Although there are many, many excellent events each week in New York that it would make sense for a startup entrepreneur to attend (see Gary’s Guide, Startup Digest, or This Week in NY Innovation), the truth is that (a) VCs and serious investors don’t go to most of them, and (b) the odds are slim that even if you and the investor were at the same event, you will have the opportunity or time to do more than say hello.

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The Rule of Thirds

Berkonomics

'It is rare when one person starts a company, supplies all the funding, and shares no management tasks or equity with others, and still grows the company to any significant size, worthy of a multi-million dollar opportunity to cash out at exit. We should think of the creation and growth of a high valued company as the sum of three parts, with three distinct classes of participants helping to make real value out of a raw start-up.

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Customer service is everything

Derek Sivers

I was honestly surprised that CD Baby was such a runaway success. But I was even more surprised to find out why. Whenever I was out at events, I’d listen as musicians would tell other musicians why they chose CD Baby. Was it the pricing? The features? Nope. The top reason, by far, was this: “They pick up the phone! They reply to my emails! You can talk to a real person!”.

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The Marketing Math Behind Scaling a SaaS Salesforce

Tomasz Tunguz

A terrific SaaS VP of Marketing once told me, “If the sales team is focused on hitting this quarter’s revenue target, then the marketing team ought to be focused on next quarter and the following quarter.” In SaaS companies, one of the marketing department’s primary responsibilities is generating sufficient customer interest to enable the company to achieve their revenue targets.

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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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Brooklyn Bridge Ventures invested in Ringly because being present is fashionable

This is going to be BIG.

'A year ago, I wrote a post about how I was trying to keep my phone away during meals-- No Phone with Food. These days, we''ve got so much that can distract us, being present has become a rare feat. I''ve tried to stick to it, but it''s hard. I run my own business and I try and make myself available whenever my entrepreneurs need me. I also have a lot of family responsibility--with parents getting older and my grandmother making her way ever closer to 100, there are a few important folks I alway

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Joe Perez, Founder of @tastemade, On What Makes a Great Product Manager & More

Both Sides of the Table

'Update : Bothsides TV is now available on iTunes , Soundcloud , Stitcher , or any RSS podcast player you use, and don’t forget to subscribe on YouTube. I also added a little Soundcloud widget on the sidebar (if you’re viewing on web – not on mobile or RSS reader) that you can listen to each episode with. In the most recent episode, I interviewed Joe Perez , Founder of Tastemade.

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How To Turn Friction Into Value In Your Startup

Gust

'Image via Wikipedia. Entrepreneurship is not a job for the Lone Ranger. Every startup requires building and maintaining effective relationships with people, including partners, team members, customers, and investors. That means giving and asking for feedback, and learning from it, especially negative feedback. “Friction” is feedback mixed with emotion or drama, making it all the more difficult to sort out the value.

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Find your champion.

Berkonomics

'If you seek funds from an organized investment group such as an angel fund, venture capital entity, or even an investment club, the first thing you want to do is to find one person to buy into your vision, become excited by your enthusiasm and be willing to become the internal champion for your fund-raising effort. In some groups, if you cannot find such a person, you cannot even find the way to apply for funding, as some groups make it imperative that any introductions come from the inside, fr

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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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Using Outbound Prospecting to reach highly targeted prospects

For Entrepreneurs

'As most of my readers know, I am a big fan of Inbound Marketing. However there are times when inbound leads aren’t either enough, or the right kinds of leads needed to reach your best potential customers. In those situations, one tool worth considering is the use of a dedicated sales team to do outbound […].

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The Importance of Hometown Investors for Startups

Tomasz Tunguz

I was eight years old and running with a dime in my hand. Into the bus stop to pick up a paper for my old man. I’d sit on his lap in that big old Buick and steer as we drove through town. He’d tousle my hair and say son take a good look around. This is your hometown. My Hometown by Bruce Springsteen. Hometown investors, the local group of angels and VCs within a startup community, are an essential part of startup ecosystems.

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A Sign of the Times: Why Saving the Kentile Sign is Important #savekentile

This is going to be BIG.

'There''s a 60+ year old sign in Brooklyn leftover from a company that went bankrupt years ago. The current owner of the property wants to take it down and has every right to do so. So what''s the big deal? The Kentile Floors sign has become a mainstay of the Gowanus area. F train riders pass by it everyday on the way to and from work. It has its own Twitter personality.

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Officially Announcing Bothsides TV

Both Sides of the Table

'For 2 years I interviewed VCs & founders for a show called This Week in VC. If you want to see any back interviews you can click on that link. I’ve been promising to relaunch a new show for the past 18 months but needed to find somebody to help me with cameras, filming, editing, distribution, etc. Luckily the supremely talented Kyle Taylor joined Upfront Ventures and has helped kick me in the arse to get the show going again.

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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.