Siddarth Razdan (Mum Toronto Dxb)’s Post

"When your cap table makes your startup uninvestable." How important is your cap table when you're looking to raise a 💸 new round? Extremely important. Here's a concrete example: 👉 One startup gave up more than two-thirds of its equity to raise $3.3 million. That's at the seed stage. If the company is starting a $5 million round, this is a serious 🚧 roadblock. On top of that, not only do the investors own more than 66%, but the employees own ... 🚫 nothing. An #ESOP would have been very useful here. Why is this such a big problem and what are possible solutions (like cleaning up the cap table)? Read more on TechCrunch. 👇 #equitymanagement #captable #fundingrounds #seed #seriesA #startups #ESOP

Ever wondered how VCs handle failed startups? Check out this eye-opening TechCrunch article shedding light on how VCs are redefining the playbook by backing the wind-down of failed startups. In an industry where success stories often take the spotlight, understanding the nuances of failure is just as crucial for aspiring entrepreneurs and seasoned investors. This insightful piece offers a glimpse into the evolving landscape of startup funding and the invaluable lessons learned from setbacks. #venturecapital #startups #leanstartups

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Sumeet Shah, Ray Brijmohan, Fernando Moran Eserski, Randy Castleman, Michael Sexton, Scott Sobel, Tripp Shriner, Ryan Darnell, Rachel Lam, Konstantine Drakonakis, PE, Chi Achebe, Anthony D. Mascia, Rob Logan, Brian Choi, CFA, Bryan MacDonald, Dov Schlein, Mark Quinlan, Steven Axel, Susan Lyne, Jay Bockhaus, Andrew Hertzmark, Micah Rosenbloom, Michael Papazis, Zubeen Shroff, Laura Sachar, David Birnbaum, Karan Rai, Daniel Neuwirth, Scott Marden

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Marc Yi, Matt Holleran, Greg Hitchan, Ravi Viswanathan, Kai Tse, Timothy Komada, Ed Kim, Charles Tan, Fred Campbell, Hiroshi Menjo, Greg Back, Babak Poushanchi, John Occhipinti, Hiroshi Menjo, Neil Weintraut, William Dai, Ashvin Bachireddy, Esteban Sosnik, Susan Mason, Holden Spaht, John Spinale, Warren Weiss, Purvi Gandhi, John McCrea, Gans Subramaniam, Sridhar Obilisetty, Adeyemi Ajao, Cindy Padnos, Catherine Chiu, CJ Reim, Armen Vidian, Jeff Crowe, Douglas Crawford, Hemant Bhardwaj, Jukka Alanen, TJ Nahigian, Akif Malik, Kris V.

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Olaide Lawal, Pete Oberle, Kim Kamdar, Adriana Tortajada, Liz Griggs, Henry Floyd II, Michael Piraino (CPA), Heather Slotnick, Scott Dunklee, Brent Granado, Chris Czaplak, Jared Archibald, Dan Gatti, Joaquin Silva, John H. Roshala, Steve Hamerslag, Arda Minocherhomjee, Tyson McDowell, Dan Ross, Max Zamkow, Sheldon Lewis, Albert Vazquez-Agusti, Jennifer Kan, PhD, Steven Frambes, Jon Bassett, Omar Alfi, Aaron Contorer, Prasad Sunkara, Ph. D, Peter N. Townshend, Michael Downing, Kristin Tucker, Greg Arrese, Abinash Tiwari

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Javier Noris, Hayden Simmons, Chun Xia, Gabriel Luna-Ostaseski, Derek Langton, Brian Cho, Tatyana Isa 🟨, Samir Kaul, Mo El-Bibany, Darwin Ling, Rishi Taparia, Nicolai Wadstrom, Tom Meister, Caroline Xie, Antoine Nivard, Hugh Norton-Smith, Drew Glover, Patrick Spaulding Ryan, Thanos Paraschos

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Danielle Caston Strazzini, Mei-Mei Tuan, Lital Leshem, Vincent LoPriore, Neil DeSena, Joseph Levato, Natalie Hwang, Richard Swift, Matthew J Eager, Craig Kennedy, Daniel Roever, Kelvin Thompson, Gopal Chopra, Steven Margulies, Gregory Leonarczyk, Joshua Rahn, Marc Chase, Michael Frankel, Scott Frayser, Joseph Weiler, Jeffrey Valenty, Jared Carmel, George Kaufman

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Ngoc Do, Gary Moon, John Gleeson, Chris Winship, Emmanuel Roubinowitz, Robert LoPresto, Farouk Ladha, Sean Dempsey, Daniel Gluck, Bobby Lent, Jie Chen, Eric Risley, Gans Ganapati, Sarah Smith, Daniel Skaff, Tania Fernandez, Larry Li, Dave Munichiello, Raluca Dinu, Cynthia Ringo, Jun Li, Eran Sandhaus, Donald Putnam, Clark Callander, Jack Altman, Andrew Pascal, Rosie Mora, Aakar Vachhani, Davorin Kuchan, Joseph Hawayek, Aron Bohlig, Terry Doyle, Sunil Grover, Pulakesh Mukherjee, Kyle Ryland, Vikram Rao

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Stephen Krupa, Thom Flohr, John D'Orazio, Jalak Jobanputra, Samuel Wertheimer, Dov Schwell, Chad Anderson, Ron Marshal, Thej Gurumurthy, Lee Linden, Brian Mota, Nicholas DuBray, Richard Mumby, Sherif Nessim, Hendrick Lee, Oliver Mitchell, Jason Guss, Cyril Berdugo, Gurdane Singh Bhutani, Dr. Michael Fikar, Radek Kozlowski, Tyler Morley, David Robakidze, James Gettinger, Daryl Twitchell, Merritt Quirk, Shaheed Bailey

I have been running One Million by One Million (1Mby1M) since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years. Startups that do not have what it takes to achieve velocity should not be venture funded. Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. However, 9 out of 10 venture-funded startups do not attain the kind of velocity that yields Unicorn valuation. What happens to venture funded startups that fail to accelerate after Seed, Series A, Series B or later rounds of funding? Among other things, they fail to raise additional funding. Runway runs out. Companies fold up or get sold for cheap. Entrepreneurs lose years of their lives. Hopefully they learn. If they have the energy, they start another company. Yet, given that VCs invested in these companies after significant due diligence, these companies were considered high potential once upon a time. It is worth considering what went wrong. Please read this multi-part series where I explore the topic in some detail. You can access the parts through this post. https://lnkd.in/gWiqZTKq You can come talk to me at one of my free roundtables: https://lnkd.in/gF2zTJj #startups #VCs #funding #investor #venturecapital #entrepreneurs Jesse Wedler, Richard Boyle, James Burness, Jason Avilio, Parker Thompson, Gady Nemirovsky, Hrach Simonian, Rexhep Dollaku, Shahin Hedayat, Rob Kuhling, Peter Lukens, Ted Schlein, Maximilian Ventilla, Eric Chin, Fred Toney, Luke Sikora, Anand Iyer, Voytek Siewierski, John Zeisler, Arielle Zuckerberg, Somesh Dash, Roger Lee, Kevin J. McQuillan, Mark Wagner, Sean Hoge, Champ Suthipongchai, Peter Freudenthal, Sunil Dhaliwal, Dane Ross, Chris Hadsell, Justin Kan, Chelsea Stoner