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The last money has the first say.

Berkonomics

Be careful about investor rights This important variation on money talks is an important consideration for entrepreneurs when seeking an investment from professionals such as VCs. Something like a marriage (and often lasting just as long statistically), your investment partner can be a great cheerleader, coach and resource. But the moment things turn sour, including missed plans, some investors on company boards go into a predictable mode of dictating terms for emergency loans or additional inve

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Risk, insanity, and the 50% startup rule!

Berkonomics

Fifty percent of all businesses formed will fail within the first two years. There are many variations of this number since there are a number of ways to measure failure. But the number is a startling reminder that creating a business is not easy, nor is it any assurance of success. How to define “success” for a startup? After speaking with many entrepreneurs over the years, each defines success in his or her unique way.

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Small Business Grants You Can Apply For in October 2024

Tech.Co

Free money might sound like it’s too good to be true – especially in 2024 when businesses are finding it harder than ever to access traditional financing. Yet, whether you’re looking to start a business or take an existing venture to the next level, there is actually a wealth of opportunities out there to help you reach your potential.

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Four Locations Confirmed for San Diego Startup Week 2024

Startup San Diego

San Diego Startup Week 2024 is gearing up to be a landmark event, showcasing the vibrant startup ecosystem across multiple dynamic locations. Taking place from October 21st to the 25th, […] The post Four Locations Confirmed for San Diego Startup Week 2024 appeared first on Startup San Diego.

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Can You Ask for Office Rent Relief? How to Manage Your Lease During COVID-19

Office leases are one of companies’ largest expenses, and if your whole team is working from home with no clear end in sight, you may be wondering what to do about your lease.

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The Growing Popularity of Remote Work and Its Benefits for Tech Startups

AllTopStartups

In the tech industry, remote work has emerged as a transformative trend. Startups, in particular, are increasingly embracing this model, recognizing its potential to revolutionize operations. By eliminating the need… The post The Growing Popularity of Remote Work and Its Benefits for Tech Startups appeared first on AllTopStartups.

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LA Game Co SCOPELY Lands $35 Million

LATechDigest

Multi-player mobile games network just raised $35 million in Series A funding from a pool that includes Knoll Ventures, Sands Capital Ventures, The Chernin Group, Greycroft Partners, Highland Capital Partners, and Evolution Media Capital. More details at VentureBeat.

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Small Business Grants You Can Apply For in September 2024

Tech.Co

If you’re currently stressed about your business’s finances, you’re not alone. According to research from Goldman Sachs, 77% of small businesses are currently concerned about their ability to access capital – but it’s not a lost cause. Whatever your business size or specialism, chances are there’s a grant initiative out there that you’re eligible for.

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1,600+ Made Waves of Innovation for the 12th Annual San Diego Startup Week

Startup San Diego

Over 1,600+ attendees joined us throughout October 21st-25th for the 12th Annual San Diego Startup Week. This was a monumental event, “Making Waves of Innovation,” from Carlsbad all the way […] The post 1,600+ Made Waves of Innovation for the 12th Annual San Diego Startup Week appeared first on Startup San Diego.

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How Does Advanced Warehouse Management Technology Benefit Businesses? Enhancing Efficiency and Profitability

AllTopStartups

Advanced warehouse management technology dramatically enhances business operations by streamlining various processes. These technologies improve efficiency, reduce operational costs, and boost productivity. By integrating tools such as Warehouse Management Systems… The post How Does Advanced Warehouse Management Technology Benefit Businesses? Enhancing Efficiency and Profitability appeared first on AllTopStartups.

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Vorro, XeneX, Inc. Announce Healthcare Industry Enterprise Integration and CyberSecurity as a Service Partnership 

StartUp Beat

XeneX, Inc., a leader in Security Operations Center as a Service (SOCaaS) for threat hunting, detection, and response, today announced a new Integration Platform as a Service (IPaaS) partnership for the Healthcare industry with Vorro. This partnership offers healthcare providers and their partners access to the enterprise integration, and cybersecurity managed services needed for business […] The post Vorro, XeneX, Inc.

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The Berkus Method: Valuing an Early-Stage Investment

Berkonomics

How do you value pre-revenue companies? Last time we examined ten different ways to value companies already in revenue, usually beyond the early stage. Now we tackle the more difficult and subjective task of placing a value upon those startups that don’t fit into that mold. For those of us who’ve invested in early-stage companies, especially technology startups, we have confronted a universal problem.

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California Lawmakers Pass Controversial AI Bill

Tech.Co

The California State Assembly has passed landmark regulation to curb the potential threat of AI. California lawmakers on Wednesday passed the bill – the first of its kind in the US – pending a vote in the state Senate. Governor Gavin Newsom will now have a month to decide whether or not to approve it. As per the bill, AI companies based in the Golden State will be required to implement a suite of precautionary measures before training AI models.

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Announcing Our Founders Fight Club Finalists!

Startup San Diego

After much deliberation with our all-star selection committee, we’re excited to announce the top 8 finalists for this year’s Founders Fight Club! These startups come from a range of industries, […] The post Announcing Our Founders Fight Club Finalists! appeared first on Startup San Diego.

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How Can IT Services in Los Angeles Help Reduce Your Business Costs?

AllTopStartups

Let’s be real—running a business in Los Angeles isn’t cheap. Between rent, payroll, and the rising cost of just about everything, it’s no wonder businesses are constantly looking for ways… The post How Can IT Services in Los Angeles Help Reduce Your Business Costs? appeared first on AllTopStartups.

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Oh, go ahead and ask for $5M for your startup.  

Berkonomics

I cannot tell you how many times I have seen executive summaries of business plans in which the entrepreneur seeks $5,000,000 to build the business. Four reasons you should reconsider. First, few startups can use that much money today with all the virtual services available and increasingly inexpensive methods of development, prototyping and marketing.

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How to increase your valuation by reducing risk       

Berkonomics

Why reduce investor risk? In the creation of a young company, there are five principal risks to be addressed by the entrepreneur. Professional investors will probe these five risk areas and make the decision to invest based upon comfort with each. So, it is important for the entrepreneur to identify, address and mitigate each of these in order to increase valuation and decrease the risk of ultimate loss of the business.

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How little information can you give to investors-lenders?  

Berkonomics

Every investor or lender wants regular information from companies taking their money. And most of us are frustrated by the lack of regular communication – unless the company needs more money. On the other side, entrepreneurs and CEOs usually have a natural fear of giving too much information to investors and bankers after the initial amounts have been received.

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Be approximately right rather than exactly wrong.

Berkonomics

John Tukey, coiner of the word ‘bit’ to describe a single switch of digital micro-data made this provocative statement. Tukey was a statistician; one you would expect to describe events in terms reeking with precision. Where’s the precision in that? Instead, Tukey of asking for precision as we’d expect, he implored us to think in terms of relevancy, cause and comparisons to known events.

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Oh, come on! Jockey or horse again?  

Berkonomics

This argument is getting trite for those of us who’ve been around for a few years. We’re always asked the question, and almost always have the same answer. Let me explain it to those newer to the game or curious about our attitudes. Early-stage investors have been arguing over this for years. Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)?

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Negotiation! We all can improve.

Berkonomics

Think you don’t use negotiation most every day of your life? From the time we learn to manipulate our parents from the crib to today, we learn to negotiate to obtain our wants and needs. As we grow, we negotiate constantly with our parents, then with our peers. As we enter the business world, we negotiate with our bosses and our subordinates. We negotiate with our suppliers, customers, investors, and even our auditors.

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Gray areas in non-compete agreements?

Berkonomics

Last week we introduced the subject of non-compete agreements. Let’s dive a little deeper and present some “gray area” scenarios to consider. First the obvious case in point What if you are the seller of a previous business or shares amounting to more than an insignificant percentage of a previous business? Certainly, the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing.

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Are you afraid of non-compete agreements?     

Berkonomics

Entrepreneurs tend to remain in the business niche they know best. Usually that means one they once or recently spent time as an employee or manager within a company where they had little or no ownership. Are you one of those? Some of these entrepreneurs starting a new company are alumni from companies that would be a competitor to the enterprise being created or joined.

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Do you agree with “Fail fast?”

Berkonomics

Here’s a question that should strike close to home. Professional investors like to quote this mantra to anyone who will listen. “Fail fast,” they say. But what if you believe so strongly in your budding enterprise that this seems to be the most ill-advised directive you’ve ever heard? So here are some rules that might make it clearer for you and for those who so easily quote the mantra.

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Missed Expectations and the 80% M&A Rule.

Berkonomics

Eighty percent of all businesses purchased by another company or by a new investor-operator fail to meet the stated expectations of the buyer after one year. As with the fifty percent rule discussed last week (fifty percent of startups fail within two years), this rule is hard to find an author willing to be quoted as the source. But it is within the range of experience by many of us professional investors, and with those who have acted as brokers, serial purchasers or consultants for acquisiti

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Broadcast a clear goal to rally your troops!

Berkonomics

Too many business leaders fail to point their troops in a single direction where the goal is known and the process to achieve it clear. Some work to achieve good deeds and hope that their efforts will result in financial success over time. Others aim for financial success during the growth of their business and at the liquidity event or sale of the business – someday.

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Drumroll…Announcing the Lightweight Intercollegiate Pitch Competitors!

Startup San Diego

The selection committee has finalized the top 10 startups from our intercollegiate community to compete in the Lightweight Intercollegiate Pitch Competition! This tournament will take place at the Parma Payne […] The post Drumroll…Announcing the Lightweight Intercollegiate Pitch Competitors! appeared first on Startup San Diego.

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Announcing Panelists for 1st Mondays in September 2024

Startup San Diego

Startup San Diego’s 1st Mondays event, powered by LogicBoost Labs, returns on September 9th, 2024, at the Sharp Prebys Innovation & Education Center. This quarterly event is a cornerstone of […] The post Announcing Panelists for 1st Mondays in September 2024 appeared first on Startup San Diego.

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Newest Strategic Partners at Startup San Diego – Q4 2024

Startup San Diego

Startup San Diego is excited to announce the latest strategic community partnerships established this past quarter. We welcome the Don Norman Design Awards, WomenHack, UC San Diego Institute for the […] The post Newest Strategic Partners at Startup San Diego – Q4 2024 appeared first on Startup San Diego.

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Accelerators and Important Startup Applications for Q3 2024

Startup San Diego

As we enter the third quarter of 2024, aspiring entrepreneurs and startup founders have many opportunities to accelerate their business ideas and gain valuable support in San Diego. This compilation […] The post Accelerators and Important Startup Applications for Q3 2024 appeared first on Startup San Diego.

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Recap of StartupSD 1st Mondays powered by Logicboost Labs at Sharp Prebys Innovation & Education Center

Startup San Diego

On Monday, September 9th, Startup San Diego hosted its signature quarterly event, 1st Mondays powered by Logicboost Labs at the Sharp Prebys Innovation & Education Center (SPIEC). This edition brought […] The post Recap of StartupSD 1st Mondays powered by Logicboost Labs at Sharp Prebys Innovation & Education Center appeared first on Startup San Diego.

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Warnings about investor limitations!  

Berkonomics

Some businesses just can’t fit within the angel capital or friends and family model for raising funds. Sooner or later, you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. What VC’s can and cannot do First, VCs in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s).

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Newest Partnerships for 2024 – TiE San Diego & The School of Young Entrepreneurs (SofYE)

Startup San Diego

Were wrapping up 2024 and were excited to announce the newest partnerships for Startup San Diego! Weve renewed our partnership with TiE San Diego and introduced The School of Young […] The post Newest Partnerships for 2024 – TiE San Diego & The School of Young Entrepreneurs (SofYE) appeared first on Startup San Diego.

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A lesson: How NOT to define your competition!     

Berkonomics

We investors see this all the time. An entrepreneur pitches using a deck with no slide for competition. When asked (as we always do), the response is This is new. We have no competition. Niet! No! Unh unh. Professional investors laugh when they hear an entrepreneur come out with that one. That statement has killed more investment deals than almost any other.

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Would you pay a high achiever more than yourself?   

Berkonomics

Heres a case study for yourself: Recently I was asked to review an offer letter for a senior director of business development. The CEO was concerned that he was offering far too much in the form of incentive compensation, with bonuses that could greatly exceed the base salary if all the bonus items were achieved. The critical question I asked the CEO to imagine what the company would look like if all those bonus-expensive items were completely achieved in one year.

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How much of my business do I have to give to an investor?   

Berkonomics

If you’re looking for growth capital, this one’s for you. We’ll cover what information you’ll expect to provide, your range of expected values and amounts of investment to expect. All to help you set your expectations. OK? Financial History and Projections Let’s start with the basics. If you are a going business with a track record of revenues, then the importance of accurate current financial statements cannot be overstated.

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How will a buyer value your business?  

Berkonomics

Let’s explore a number of methods to value your business. Many buyers use a combination of methods, throwing out those that do not fit the appropriate form of business. Corporate Valuations Using Various Methods There are at least ten recognized ways to value a business. Some are inappropriate for young businesses or those engaged in certain enterprises, such as software development – where fixed assets are not usually important enough to use for purposes of valuation.

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