The one metric early stage startups should ignore

Too often founders of early stage companies build a three year revenue plan which gets the company to profitability. These are companies that are barely generating revenue yet somehow decided to focus on profitability. While in theory, getting to profitability is an important milestone for a company, it typically comes at a much later stage in the company’s… Continue reading The one metric early stage startups should ignore

Deep Learning is eating the world

One of the biggest phenomena of the past decade was “Software is eating the world”. Today, there is almost no industry which is not run on software and delivered as an online service. This has resulted in new online giants such as Uber, AirBnB, Amazon etc. But now that so many businesses are leveraging software,… Continue reading Deep Learning is eating the world

The biggest mistake VC make

Investing in startups is not an easy job. As an investor, you are not only betting on a specific startup and team, but often on a market that doesn’t yet exist. Even the best team in the world is doomed to fail if it undertakes the wrong market. The opposite is not always true. One… Continue reading The biggest mistake VC make

The Best Entrepreneurial Network In The World

Most people believe that the strongest entrepreneurial network in world is either Stanford, Harvard, Y Combinator or something alike. These are indeed incredible networks which created some of the world’s largest tech companies. They receive a vast amount of media coverage, attract some of the world’s top talent who wants to be associated with these brands, and enjoy a huge amount of funding and… Continue reading The Best Entrepreneurial Network In The World

Managing your startup option pool

One of the things you need to do as a CEO of a startup is manage the Employee Stock Option Pool (ESOP). This is the pool of options you use to attract and retain talent. When pricing a financing round ESOP is typically included in the pre-money valuation and therefore it dilutes the existing shareholders… Continue reading Managing your startup option pool

A template for measuring SaaS

I have discussed in the past the past the benefits of SaaS and specifically recurring revenue model. The main benefit of the recurring revenue model is the predictability of revenue, customer acquisition payback, customer lifetime value (CLTV), and the ability to optimize Sales & Marketing spend accordingly. But in order to truly benefit from a recurring… Continue reading A template for measuring SaaS

The “I’m not raising a round” trick

Recently many of the companies we meet claim they are not raising capital. Yet it is very clear that they are in the middle of a fundraising process, or at least testing the water. I don’t know if it is a sign of the frothy market environment when companies expect to raise the following round (at the… Continue reading The “I’m not raising a round” trick