Today’s society glorifies startup life. Most see startup culture as acquiring VC funding, getting a fancy office, and rapidly scaling. The problem is that no one wants to talk about the grueling path every startup must endure before acquiring funding— this is the side hustle stage. This means you are still working your full-time job and starting a business on the side which will eventually become large enough to be your new full-time priority.
Marc Andreessen stated that the life of a startup could be divided into two phases: before product/market fit, and after. The latter is the fun part – when VCs and scaling the business come into the equation. This article is about the former, less glamorous part of building a business. The part that ...
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors.
This approach taps into the collective efforts of a large pool of individuals — primarily online via social media and crowdfunding platforms — and leverages their networks for greater reach and exposure.
Sounds great, right?
But because this method is relatively new, many people don’t understand exactly how crowdfunding works.
Simply stated, crowdfunding works by presenting your idea to people inside and outside of your network and allowing them to contribute toward your fundraising goals online.
The crowd is essentially your personal network, potential customers, and — in the case ...
It was recently reported that the co-Founder of WeWork Adam Neumann took over $700 million off the table from investors long before the company had gone public.
How do these Founders go about getting cash out of their startups long before the startups ever cash out themselves?
Investors will often dangle the option of providing some Founder liquidity only when the deal they are trying to get into feels incredibly competitive.
This happens only rarely, and only amongst investors who are open to providing some Founder liquidity (some are very against it!).
Generally speaking, it only helps the investor by allowing them to get into the deal but provides very little upside to the company a...
We all know what it means to give equity away. But what does it take to get it back?
There are a few different methods we can use to begin clawing back some of our hard-lost equity, but all of them require quite a bit of effort — and aren't nearly as easy as giving it away!
When we look at future funding rounds, if things are going well, we may be able to negotiate some additional stock awards based on the next financing.
This is only an option if the company is doing well and we can point to a significant track record that we've demonstrated to get it there. It doesn't happen a lot, but it does happen.
Oh, and if we don't negotiate hard for it, no one is ever going to suggest it for u...
The conventional wisdom in the startup community these days is that to create a successful startup, you need to move at breakneck speed in everything you do.
And, to facilitate this, you should consume as much money as you can get your hands on along the way to make sure you’re removing all obstacles from getting to market. The perception is that if you move too slowly at the beginning, you’ll miss the market and, even worse, you won’t get funding.
But, is this correct?
While we completely support the idea that getting a great product to market as quickly as possible is a cornerstone of startup success, we just don’t buy that frenetic speed is the best way to do it. It’s not what has worked for us, nor for any of the successful startups we’...
Starting a business or becoming a professional athlete requires a unique combination of motivation, drive, and determination. Founders and professional athletes must be highly motivated and driven in order to achieve their goals and make a lasting impact in their respective fields.
In addition to being motivated and driven, both groups must also be able to handle high levels of competition and pressure, adapt and pivot in the face of change, have the resilience to bounce back from setbacks and failures, work well as part of a team, and continuously learn and improve in order to stay competitive.
Founders and professional athletes must be highly motivated and driven to succ...
Can a startup apply for a small business loan? Are you sure? Usually when startup founders think about funding, we think about venture capital or accelerator programs. That’s because those funding sources offer potentially big payouts, oftentimes with no obligation to pay back the money if the startup fails.
But, there’s another source of funding that’s more traditional — and potentially riskier: the small business loan.
Small business loans are a more traditional way of getting financing, which means they may be easier for some startups to get than venture capital, which can be a long and arduous process.
They’re a great option for startups that already have some momentum and — even better — some income coming in. That’s because while ven...
"Oh look! Someone just sold a company similar to ours for a million billion trillion dollars. And look at that, they raised a bunch of money along the way. I bet if I had raised money I would be a huge success too."
Whether or not we think about it daily, many of us have this nagging thought in the back of our minds of the "what if?" of raising capital. We picture this alternate universe where we took on investor funding and grew to become the next great darling of our industry.
The problem with that thought process, though, is that it puts "raising capital" in the same bucket as "executing properly" which is very different.
There's a time and a place where raising capital absolutely makes sense, but often we're either not there or we misu...
…when I started StartupList, I didn’t know where it would lead or even that I was actually creating a startup. It was just a project I was working on to learn more about startups and how to build a website. It evolved into something I never could’ve imagined at the time.
There is no better way to hear the story of how Nick Frost came to champion startups than to hear it straight from his mouth. Startups Live was incredibly fortunate to have such an opportunity.
Often this collection of Founders turns over nitty gritty details of building startups, examining a particular question or aspect of the work. This talk does some of the same, but it also brings the role of fortune into the field of play – not luck, or the unexpected influence of out...
At Startups.com, we built an 8-figure business by saying "no" — a lot.
We knew going in that if we’re going to have 100% control of our destiny now and in the future, that would only work if we could constantly say "no" in a disciplined manner.
But you know what? Saying "no" sucks. Just like saying "no" to delicious glazed donuts sucks. We know that we want them, but we also know the cost of saying "yes"! Now I'm hungry for a glazed donut. See what I mean? We knew that controlling our destiny would mean an insane amount of discipline, across the entire organization. In order to prepare ourselves for this discipline, like any good regimen, there were a few things that we'd have to stay incredibly focused on.