Spartina

Legal Docs for Seed Money

Wed, 03 Mar 2010 19:46:47 GMT

While in the past, technolology Series A financing was over $10 million, today, the starting point is often under $1 million. Legal documents used to create these companies need a new look, and Ted Wang, an attorney at Fenwick & West, and venture firm Andreessen Horowitz, is providing a new format for these early-stage finacing. The Series Seed documents are designed for fundings of between a couple hundred thousand and $1.5 million. They simplify the old, huge documents, and are not only smaller, but also available on-line.

Meet Paul English and Customer Service

Fri, 26 Feb 2010 02:32:32 GMT

Here's an article that is quick to read but lasting in its impact. Paul English is a model of an entrepreneur to know. He walks his talk. His travel company, Kayak, is a great example. He believes the customer comes first, and is willing to answer the phone himself. Of course, we also love the fact that he starts his day with meditation and yoga. Dare we say that perhaps that is one of the contributing factors to his success? Umm..yes, we dare!

Startup Metrics

Fri, 26 Feb 2010 02:27:51 GMT

We have longed encouraged Internet startup entrepreneurs to create a set of metrics right at the start. This way you can track the health and growth of your company. In this indepth article, David Skok gives a really clear set of examples as to what metrics are imperative if you are a new startup The basic premise is that if you are interested in profits (and who isn't), then layer by layer, you look at the components of profits, what makes up profits, etc. Eventually you can see precisely what you are tracking and why. This article needs to be read slowly, and digested as it is almost like a seminar.

Affiliate Marketing

Mon, 25 Jan 2010 21:10:43 GMT

For a tech startup, an easy source of revenue can often be using affiliate channels. It does take some work to find them, get them signed up, and pick the ones who reach your target audience. However, in general, results are positive. Here's an article that takes a look at the steps in tapping into the affiliate market. Note that the affiliate information is about half-way down the article. Skip the opening and go right to his tips. You'll find them helpful.

Hiring Tips for Startups

Mon, 25 Jan 2010 21:06:13 GMT

Here's an interesting perspective on how to hire great employees for your startup: hire people who are already working. This article is worth reading just so you can see if you agree. Personally, it's not necessarily a perfect solution. In the article, Hoffman encourages lots of web recruiting. There is another side: stealing people can bring bad karma. If someone is already working, but unhappy, why haven't they left? Also, there is too much of a stigma placed on someone who is not working. Perhaps they are the ones who have the courage to vote with their feet, and walk out when the time is right, instead of hanging on to the teat, just because of the fear another job won't come along. On the other hand, we fully agree with the idea that referrals from existing employees is a great way to go. Your existing staff already know what the working conditions are like, and they know if their friends will fit in or not, so there is some pre-screening that takes place.

Here's David Heineimeier Hansson

Mon, 25 Jan 2010 20:59:25 GMT

There are some great entrepreneurs out there, and David Hannson in definately one of them. The creator of Ruby on Rails, and a partner at 37 Signals, in this presentation at Stanford, he offers some wise advice to entrepreneurs who are looking at starting their own business. A great video to watch.

Truth is Sometimes In the Middle

Mon, 30 Nov 2009 20:10:43 GMT

This is an article to read before your answer your first phone call from a VC. The end of the article warms us: "Is there a lesson here for other entrepreneurs? It may be that no question is impolite during a meeting with investors. “It’s fair game to ask who they’ve seen, who they’re talking to, what they’re incubating,’" In other words, if a VC is asking you a lot of strategic questions, you need to know who you are talking to. What are they going to do with the information in addition to perhaps investing in your company. If you are talking to a potential competitor, you need to be a bit more guarded.

Liquidation Preferences

Mon, 30 Nov 2009 20:03:42 GMT

Be careful how you create the liquidation preferences in your offerings. They are getting a closer scrutiny these days because of the markets. Here's a thoughtful article from the Wall Street Journal Blog.

Raising Venture Capital

Mon, 30 Nov 2009 19:59:27 GMT

Here are some fascinating questions to consider when you are raising venture capital. They were asked by VCs to Redfin, and really make you, the entrepreneur, think about your company. Good to read these and be prepared before you go before the VC.

A Valuation Method

Mon, 30 Nov 2009 19:51:14 GMT

Here's another valuable resource when you are looking at valuation for your company. Dave points out 5 key areas that should add value to your company, that are not direct sales numbers, but rather more qualitative views of your company's intangible assets.

User Interface Redesign

Wed, 14 Oct 2009 01:30:06 GMT

How often should you redesign your user interface? And, how do you get your users to move with you? Jakob's article addresses this issue very clearly and succinctly. Take a look at it before you do major surgery to your site.

Mission Statements

Wed, 14 Oct 2009 01:23:28 GMT

Mission statements can be seen as optional, but according to this blog entry, they are as critical as your business plan. Take a look at the main points about mission statements, and be inspired.

Making A Cap Table

Wed, 14 Oct 2009 01:20:15 GMT

It is essential to understand cap tables, even if your lawyers do most of the work. Here's something you can't afford to miss: a spread sheet that helps you create the cap table, along with a set of video instructions. Great stuff.

Online Spreadsheet

Mon, 28 Sep 2009 18:20:17 GMT

IT's not just Google that allows you to put spreadsheets on line. Here's a worthy competitor: EditGrid not only offers all the standard spreadsheet tools but it also adds features such as live data feeds right into your spread sheet. Sharing is a big part of EditGrid, and they emphasize that you are always looking at the most recent version, no matter who edited it. The service is free for individuals and costs $5/month for a business. It is definately worth a look.

CFO Services

Mon, 28 Sep 2009 17:52:31 GMT

Here's something to consider for your small to medium business: outsource your CFO Services.

Meet Aaron Patzer

Mon, 21 Sep 2009 16:20:01 GMT

Here's an entrepreneur to know: Aaron Patzer. It took him two years to have a $170million exit. Amazing, given that it happened during a so-called down-turn in the economy. Proves there is nothing to stop a good idea.

Co-registration for Marketing

Mon, 21 Sep 2009 16:16:28 GMT

Co-registration is a mechanis where you pay on a per-name basis to have one of your marketing pieces such as newsletter subsription etc presented to another organization's Website visitors. While this is a growing trend, it is really important to ask yourself, "does co-registration make sense as a way to grow my list?" This article points out the pitfalls.

Customer Service

Mon, 14 Sep 2009 16:21:26 GMT

if you can get that customer service and startup success are synonomous, you are on your way to a fabulous new business. In this great article, Andrew has wonderful stats, on just how important customer service is, by showing the public response to bad service. He also reminds us that "today’s free user is tomorrow’s paying customer" so we need to include service right at the start.

Startup Staffing

Mon, 14 Sep 2009 16:17:20 GMT

When you are looking for your first hires in a startup, think about where you are going and how you are going to get there. You don't want to buy a truck if you are running a road race, and you don't want to hire formal, by-the-rules executives when you are in startup, entrepreneur stage. Mike has some good tips on really getting the person you need on board based on the type of help you want, not on his huge portfolio.

Startup Advisory boards

Mon, 14 Sep 2009 16:13:08 GMT

Our first recommendation to anyone starting a business is to seek a few advisors. We have gained invaluable experience and advice by have advisors who knew the busines we were in. This article gives a few more pointers on how and why to create an advisory board. Remember this is not the same as a Board of Directors, who have legal and fiduciary responsibility for your company. The advisory board is there to help you succeed.

Customer Development not Product Development

Mon, 14 Sep 2009 15:40:07 GMT

In this article we hear more from someone who agrees with Steve Blank's approach to product development, which is, abandon it and track customer development. As in Steve's article, this direct experience article points out that producing a product is of little financial value if it is not something that customers want and will pay for.

What Not To Do: Product Development

Mon, 14 Sep 2009 15:35:55 GMT

Here's a long blog entry that reviews the typical product development model and points out that it is a thing of the past. It's not often worth while reading about things that don't work. But in this case, what Steve writes about is what the major of software production still looks like. This article is the first in a series. The end goal is to encourage Internet startups to move toward Customer Development rather than Product Development. It's an interesting read.

Monetization for Startups

Thu, 03 Sep 2009 18:59:02 GMT

We are always interseted in other people's approach to a profitable revenue model. In this presentation from FBFund Incubator summer, Dan Greenberg offers his point of view on monetization. We agree with his points about finding incremental revenue streams, and like his list of considering new revenue models. While the presentation is focused on the Facebook arena, there are some good points. You can watch the slides or listen to the podcast, or both!

The Startup Pyramid

Thu, 03 Sep 2009 18:53:46 GMT

In this presentation from the FBFund Incubator summer, Sean Ellis gives a picturial understanding about strategy, and points out the pit falls that early stage startups encounter. He goes into detail about his startup pyramid on his blog, and adds some metrics and considerations to help you know when to scale your product.

Startup Hiring

Thu, 03 Sep 2009 18:47:20 GMT

In this podcast and accompanying slide show, presented at FBFund Incubator summer, Dan gives important points to think about as you embark on hiring for your early stage company. He acknowledges that it is time consuming, but, time well spent as in the early stages, you cannot afford to have dead weight.