Run the 10x Scenarios

Dreaming about the future — it’s one of my favorite things. As a thought exercise, I enjoy going through growth scenarios. Here are some questions I like to ask: What will happen when everything in the company is 10x larger? How will things work? What will break down? Where are we strong? Where are we weak?…

Benefits of a Downturn for Strong Startups

Famous entrepreneur and venture capitalist Marc Andreessen just put out a tweetstorm telling people to worry that many startups are spending excessively. While the overall landscape is nothing like the dot-com hey day, there are a number of signs that things have over heated. If funding dries up and a number of startups shut down, startups…

Bootstrapping After Raising Money

Typically, the term bootstrapping in the entrepreneurial world means that the founder(s) used their own money and sweat equity to get a new business off the ground. Only, more and more entrepreneurs are saying that they want to bootstrap the business, even after having raised an angel round (I’ve been guilty of this in the…

Make Funding Last 18 Months

A popular question in the entrepreneurial fundraising world is “How long should I make the money last before raising another round?” Of course, my advice is to raise as little money as possible until there’s a repeatable customer acquisition process (then, outside capital will have a dramatic ROI). Now, that’s not always possible, and fundraising is…

Entrepreneurs and Cash in the Bank

Entrepreneurs love to spend money on an opportunity and opportunities abound. Every day I meet entrepreneurs that are putting all their saving into their idea in hopes of making it work. Some use their personal funds and some raise money from investors. The old adage that you have to spend money to make money still rings true.…