Founders and Fundraising
Does It Mean My Pitch Is Bad If I’ve Lost Several Pitching Contests?
I had to meet with 64 VCs before we were able to raise our Series A funding of $12M. The number of VC meetings was well over 100. But, when you realize that the ratio of face-to-face meetings to investment for VCs is somewhere around 100:1, you realize that you (as an entrepreneur) have to…
Read MoreAre Business Plans Useless In Tech Startups?
I started working with a CEO a while ago. The CEO had an interesting business model, traction and customers. I asked the CEO, “How much money are you spending each month?” “I don’t know,” he answered. I asked the CEO, “What is your break even revenue?” “I don’t know,” he answered. I asked the CEO,…
Read MoreHow Much Money Do I Need To Start A Business?
I’ve seen the same mistake repeated over and over again by CEOs and business owners. The mistake blows me away each time I see it. What is that mistake? The CEO doesn’t have a plan for the business. And, if you’re going to succeed in business, you’ve gotta have a plan. The crazy thing is…
Read MoreHow Did You Get Your First Big Break As An Entrepreneur?
“Brett, come with me and take your stuff with you,” the VP of HR said to me. We were in the middle of the company’s weekly operations meeting. The minute the VP of HR asked me to take my stuff I knew I was being fired. And being fired from this company was my big…
Read MoreWhat Are Some Common Mistakes Founders Make When Pitching To Investors?
About three years ago I sat through a bunch of pitches with a VC fund I was helping. It was amazing watching every one of the companies presenting make the same mistakes. Here they are: A. You have to get to the point fast. You’ve got seven seconds to make an impression. Seven…
Read MoreWhy Do So Many Entrepreneurs Think Their Ideas Are Worth Billions?
When I started my company, I believed we were going to win. There was no doubt in my mind. When 63 VCs passed on us, and there was only one VC left as a possible investor, I believed we were going to win. There was no doubt in my mind. When revenue wasn’t going as…
Read MoreCan You Legally Remove Equity From A Cofounder You Want to Fire?
Oh it pains me to see the same mistakes made over and over again. Your cofounders have a certain percentage ownership in your company. And they have this percentage without the equity having to vest. You can’t just take the equity back saying, “We don’t like you.” It doesn’t work that way. The good news…
Read MoreIs It True That Technical Founders Are More Important Than Non-Technical Founders?
“It’s really hard to find the skill you have in product definition and marketing,” my cofounder, Vice President of Engineering said to me one day. “I think it’s next to impossible to find engineers that have the technical chops and business sense you have,” I replied. Each side thinks the other is absolutely necessary for…
Read MoreWhat Are The Main Reasons A Startup Fails After Breaking Even?
I was advising a bootstrapped startup for two years. The startup was at zero revenue when we started working together. They recently got to break even. The future looked really bright for the company. Then the wheels started falling off. The company had a really solid plan to continue growing revenue, increase profitability, and increase…
Read MoreCan I Fire My Cofounder The Week Before His Shares Vest?
Every CEO on the planet has to ask themselves a really simple question: What type of CEO do I want to be? Do you want to be a CEO that acts with integrity and does the right thing, even if it’s going to cost the company a little bit of equity or money? Or… Do…
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