Guest Author · December 2nd, 2009 Thanks to Atlas Venture for supporting Venture Hacks this month. This post is by Fred Destin, one of Atlas’ general partners. Just Say No: VC terms that can really hurt
Just Say No: VC terms that can really hurt (Part 2) - Venture Ha Guest Author · December 9th, 2009 Thanks to Atlas Venture for supporting Venture Hacks this month. This post is by Fred Destin, one of Atlas’ general partners. If you like it, check out Fred’s blog and tweets @fdestin. And if you want an intro to Atlas, send me an email. I’ll put you in touch if there’s a fit.
I usually tell people that everything I learned about being an entrepreneur I learned by F’ing up at my first company. I think the sign of a good entrepreneur is the ability to spot your mistakes, correct quickly and not repeat the mistakes. I made plenty of mistakes. Below are some of the lessons I learned along the way. If there’s a link on a title below I’ve written the post, if not I plan to.
Founders, Ownership and Prenuptials Yesterday I wrote a blog post in which I urged people to not have too many founders. Best case scenario in my mind is just 1, but at most I recommend 2. I knew this topic would be controversial because when I tell people this in person it always elicits shock. To be clear – it is not about being stingy with or hoarding equity – it is about having a prenuptial agreement. Let me give you some scenarios that do happen in real life: You start a company 50/50 with a good friend.
This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. I remember going to an Under the Radar conference in 2006 in the heat of the Web 2.0 craze. There were tons of young entrepreneurs showing their latest Web 2.0 wares. Ajax was the new buzzword and many companies went overboard. People mistook extra doses of Ajax for a successful product. Unfortunately this was reinforced by the many conferences that rushed to espouse the benefits of Web 2.0 and the subsequent acquisition sprees of companies like Google, Yahoo! Are Business Plans Still Necessary?
This is part of my ongoing series Startup Advice. This is a story of one of the risks of venture capital. When you’re an early-stage startup that hasn’t raised any institutional money you end up doing almost every job function of the company yourself. But some companies have entrepreneurs that seem talented on paper, are in a space that seems interesting to investors and are able to raise venture capital early in the company’s existence. This can often happen when there is a good product built but no real customer adoption yet. Startup Founders Should Flip Burgers