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“Success can be achieved only through repeated failure and introspection. In fact, success represents 1 percent of your work, which results only from the 99 percent that is called failure.”

It’s time to talk about something nobody likes to talk about. It’s time to talk about failure.

Failure is one of the most fundamental components of the startup experience – and one of the least talked about. There’s this weird thing that happens when people talk about failure: voices get hushed, people start looking around them, worried that someone might overhear.

Talking about failure is taboo #1 in the startup community – but that’s not doing us any favors. Because here’s the thing: startups fail all the time. And not only do they fail – failing at th...

Most startups launch with $0 in funding, but no one ever really explains how the hell they do it. We keep saying, "They bootstrapped it," as if that explains anything other than "They didn't take on investors." What the heck does that even mean? What it is intended to mean is that we find creative ways to compensate people and buy things that don't involve using cash in the bank.

We can't possibly cover every use case of how startups find resources for $0, but let's take a look at the most popular categories that people run around looking for money for and see how we make it work.

Paying for People

Figuring out how to compensate people is where we're often stuck first. Most of us are familiar with paying folks with equity, but that's not th...

In today's fast-paced world of startups, securing adequate funding is crucial to success. Entrepreneurs must navigate a myriad of funding stages, each presenting its own set of challenges and opportunities. With this comprehensive guide to different stages of funding for startups, you'll gain a deeper understanding of the startup funding stage and landscape, enabling you to make informed decisions and ultimately fuel your venture's growth.

Short Summary

• Understanding startup funding stages is essential for successful resource acquisition.

• Pre-seed, seed, series A to C financing and an IPO are common investment options available to startups.

• Preparation including a business plan and pitch presentation as well as due diligence research are key el...

Earlier this week we had one of our partners publicly share some news that we’re equally excited about: We’ve raised a round of venture financing that includes Slack and their investment vehicle, The Slack Fund.

And as they so thoughtfully put it, it’s a “two way street” as they are betting on us and we are definitely betting on them. You can read their full announcement here as well as a companion Forbes piece sharing the news as well.

Although this is exciting news all the way around we have been somewhat coy about going public with any venture financing news. Part of this has to do with the fact that many people wrongly believe that raising a round of venture is, in an of itself, a “big deal” — it’s just not true.

Or rather, people mist...

Continuing in Phase Three of a four-part Funding Series:

Phase One - Structuring a Fundraise

Phase Two - Investor Selection

Phase Three - The Pitch

• Part 1 - Anatomy of a Pitch

• Part 2 - Market Size

• Part 3 - Revenue Model

• Part 4 - Operating Model ( ←YOU ARE HERE 😀)

• Part 5 - Customer Definition

• Part 6 - Customer Acquisition

• Part 7 - Funding

• Part 8 - Key Pitch Assets

• Part 9 - Traction

Phase Four - Investor Outreach

Let’s dive in!

What is an operating model?

If the Revenue Model is all about the clever ways you’re going to make money, the Operating Model is all about the clever ways you’re going to manage costs and efficiencies to earn it.

Operating Models Shouldn't Be Afterthoughts

Often the Operating Model gets the least amount of love. That’s because ...

There is one category of consumer tech that’s being built largely outside Silicon Valley: E-commerce. Fab, NastyGal, ShoeDazzle, Birchbox, Bonobos, Honest, Dollar Shave Club, JustFab, Warby Parker and so many other once-hyped (and in a few cases, still-hyped) “e-commerce 2.0” companies were centered in fashion and celebrity hubs of LA and New York.

This interview with Warby Parker co-founder Neil Blumenthal shows that the geographic distinction isn’t just about the weather. It’s about how the company is built. I’ve never before spoken with a Web founder who put more thought into his PR hire than his…. developers.

Warby may wind up out surviving other ecommerce roadkill because they got what they were early: A fashion and lifestyle brand, no...

It’s a war of attrition, it really is. Most entrepreneurs in most industries just give up. So the question is — how long can you last? How long can you survive?

When I ask Derek Andersen about the biggest challenges of building his company, Startup Grind from the ground up, his response is refreshingly blunt: “All of it.”

“We didn’t have any money, so we couldn’t really hire anyone. We worked out of my garage for a year, just to just try to save money and run really really lean. We had no documents or templates or process for onboarding or anything.”

And on top of all those logistical challenges, there was this tiny one: “We didn’t have a brand, so nobody knew who we were or why we should exist.”

Funnily enough, the challenges that Startup ...

If you’re involved in the startup world, you’ve probably heard the term “lean startup” thrown around. No, it’s not a new weight loss plan — although I wouldn’t doubt that there are health and fitness apps out there who have used lean startup methodology.

It’s a system for creating a business that was first introduced by entrepreneur Eric Ries in 2008 and then outlined in his 2011 book The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Business.

In our article 19 Startup Books Every Founder Should Read, Lauren Foundos, Founder & CEO, FORTË said the following:

Let’s face it. Bootstrapping sucks. In theory, it should be liberating to be self-funded and self-sufficient at the early stages of running a business. But reality is much less glamorous. For one, we’re small peanuts surrounded by unicorns: our presence in the media, as a result, is almost zero. We’re competing with 10-figure marketing budgets and grinding our teeth to get there. We spend more time scratching our heads than making actual decisions.

Then, we see success stories like Basecamp, a company that could have been a unicorn but chose not to—growing to 50 employees and a customer base of hundreds of thousands along the way.

Holy shit, maybe it is all worth it.

While founders in the VC world are chasing their burn rates, Basec...

Continuing in Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping

• Part 2 - Debt as Startup Capital

• Part 3 - Equity Funding for Startups ( ←YOU ARE HERE 😀)

• Part 4 - Convertible Debt

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

Let's dive in!

Pursuing equity financing means that, in exchange for the money they invest now, angel investors or venture capitalists will receive a stake in your company and its performance moving forward.

Equity financing is one of the most sought-after forms of startup funding for entrepreneurs, although certainly the least available (compared to something like a business loan or friends and family financing). Simply put – there...