Jeff Magnusson"Manages the ca tld" = "collects licensing fees from registrars, tries to figure out what to do with the money, and sends constant reminder emails about accurate registration details"
44 minutes ago
Jake Anthony HishonTld's are strictly fun, imho, ours worked out perfectly for our business portal.net.co I can't see us living anywhere else on the Internet :) as for cira, sure those 'aspirational' initiatives sound cool, but frankly it's just another business...
Washio shuts down - despite "millions in revenue" and $16.82 million in total funds raised till date, including from celebrity investor Ashton Kutcher. "over one million items of clothing dry cleaned, and over 21,000 tons of laundry washed and folded!" Operated in 6 US cities.
Key point here is that venture capital is about one thing and one thing only: growth. If a venture-backed startup can't continue growing fast enough, it dies. For entrepreneurs, this is worth pausing and thinking - are you sure you want to be on the path of venture funding to grow into a $100M business one day (where it is a binary option: go big or go bust), or would you rather focus on a niche in a specific geographic market where you can bootstrap your way and live happily ever after. After all, prod dev+hosting cost is ridiculously low these days.
Washio founders are unemployed today - while the local drycleaner is still in business. Something to think about - venture funding has its pros and cons.
Ryan ShupakNot sure this is about venture funding. Seems like it's a problem in the business model
7 hours ago · 5
Varun MathurAngela Tran Kingyens Ryan Shupak Interesting points - but if I had a startup with 8% (or above) week over week growth over a sustained period, I would have no trouble with raising capital and perpetuating the startup's existence until I have shaped the market/competitive environment and made my business model and unit economics look better.
All the factors which you describe, if I lump them into a category "X" -- however bad/crappy they are, if the startup still has continuous growth, it would survive. On the other hand, if it doesn't have continuous growth, but has a fantastic business model/unit economics/other favourable factors, it doesn't matter and the startup will die for failure to raise further funding.
Case in point: Uber. Losses well over a billion $$, strategy built around buying the entire network - both drivers and riders with lucrative referral bonuses and other incentives. Many people scoff at its losses -- but all this time it has shaped the market/competitive environment to its advantage. Uber had the escape velocity and was able to buy itself time with its continuous growth.
Washio didn't have growth needed to raise the next round of funding and hence it is dead (which could be due to its business model or unit economics; but even if they were crappy, and it had figured out a way to grow rapidly further, it would still be around).
Good unit economics and a sound business model are essential; but growth is the deal-breaker and the most important metric above all. Here's a chart I made about compound growth -- in my opinion, 7% and lower WoW is a lifestyle business; 8% and over is a high-growth startup.
6 hours ago
Ryan ShupakSeems like you ought to need both growth and a good business model/unit economics to attract investors. If VC's were getting ahead of themselves and writing cheques for businesses that didn't meet these criteria then they'll likely lose money and learn for next time. Uber isn't really relevant here - I bet Uber has dozens of cities that are profitable already and many more that are on the path to profitability. I'd bet washio wasn't profitable in any market they were in.
Four years ago, I was a partner at Sequoia Capital, where Drew Houston, Brian Chesky, and a daunting parade of dent-making founders routinely proved that disruption happens in Silicon Valley like nowhere else. But things were changing, and fast.
Daniel RodicI can vouch for this thesis - since opening up our Cincinnati office 3 years ago, we have seen an incredible growth in the entrepreneurial community in the city, mainly driven by the local accelerator The Brandery and the entrepreneurial hub Cintrifuse which focuses the efforts of the major corporations like P&G and Kroger to attract investment into companies in the city while also offering co-working space, and facilitated programming to connect companies with customers and talent.
Hmmm... can't say I've noted this to any significant extent here in Canada, although it does make sense given the "atomization of seed rounds" that's taken place over the last few years. It would require realignment of market practices though. Thoughts / observations?
"Today, nearly all early stage term sheets I see are expressed as post-money valuations." ... See MoreSee Less
When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. That is, the valuation of the company prior to the investment of new capital. Most term sheets talked about the valuation in these terms, and you added the dollars investe...
Christian LassondeCan't say I ever see myself putting forth post-valuation term sheets. There is enough confusion in term sheets as it is (biggest one from valuation perspective being the option pool top up) #stillafounder
The Paradigm Shift Continues: Minding the Early A Gap 8/23/2016 by Tim Bliamptis Roughly ten years ago, the cost of developing software dropped precipitously. Not surprisingly, this drop in the cost of developing software made starting software companies extremely capital efficient. This shift cre...
Varun MathurThere is nothing here from a data perspective (no pattern, no anecdotal) offering a basis for this gap. The gap exists in Infographic 1 which is filled in Infographic 2 --- unable to make sense of this. Perhaps wiser folks can opine.
Boris MannStartups are confused about whether they are a venture sized business or not, and sometimes they only find out they're not when they go looking for an A.
If you are A worthy, there is global capital.
Yaletown and others have posited that there isn't enough A in Canada. Sure, if you're not good enough for a global A, you may struggle to get a local A.
I'm thinking a lot about the role of angels / non VC capital and how returns for that class can support interesting mid sized companies.
Question for my fellow SNs. We use Grasshopper + Vonage as our in-house phone combo for inbound sales/support. It's been less than reliable to say the least, so I was wondering if anyone had better options to propose? ... See MoreSee Less
Joseph TeoHey Yves We run our sales and support off Skype. It's $9.99/month and you get your own skype number and unlimited calling across north america. Get your own Skype number (We got a NY one so that it's familiar to our customers and prospect) and you can forward it to your local number as well. Been working great for us! Hope that helps :)
4 days ago · 1
Yogi YoganathanCheck out aircall.io don't use them but they are doing some cool things
Rodrigo Madrizvonage has worked for me at my home for about 5 years. Not one glitch. I understand VOIP.ms is as good but you may expect an inferior service level (e.g. by email) vs. a call center. Voip.ms is significantly cheaper too
4 days ago · 1
Colin SampaleanuI like voip.ms. They are very reliable, have great support, and are way cheaper than Vonage. I don't know why somebody would pay the premium for Vonage given the other options out there...
4 days ago · 3
Jevon MacDonaldIf it's for anything customer facing, don't be cheap! Get a high quality route -- something like trulywireless.com/ -- Twilio, Grasshopper, etc are NOT good enough or reliable enough IMO.
4 days ago · 2
Brian SharwoodWe use Talkdesk and it's been solid. I think we've got about 6-7 agent licences on it. Grasshopper is really just for 1-5 people. Vonage is really just for single use.
4 days ago · 2
Yves BoudreauThanks for all the input everyone! Will look into some of to options provided.
4 days ago · 1
Simran KambojWhy not just get a dedicated connection using SIP going to the pstn? Who is your internet provider?