Ethan Webb

21 Ways to Kill Your Company Day 9: Poor Fundraising Strategy This means two things - be realistic about the benchmarks you need to unlock your next raise and then raise enough money to hit those milestones. Be great (and realistic) with financial planning. Don't forget those extra five months you typically need to raise. #21waystokillyourcompany #fundraising #venturecapital

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If you plan on raising money (especially in this economy), having revenue isn't enough. At some point -- especially if you want to raise money--you've got to look at the "quality" of your revenue. This framework applies to ALL business, not just high growth startups... high quality rev = - My revenue is consistent and predictable - I have good margins - I'm being paid my happy/loyal customers low value rev = -I rely on 1-2 large customers <---its a great win at first...but quickly becomes a source of stress. -Transactions are sporadic and/or late -I give a lot of discounts/have lots of "sales" to inspire transactions TO BE CLEAR: In the early days, we're all chasing sells/revenue to demonstrate desirability (aka people want what I've built) #AsYouShould. Get those early customers by any means necessary to validate desirability BUT pick a moment in time to do a revenue post-mortem with your team and get real about its quality. The linked article in the comments is an oldie, but a goodie....I first found it during my time leading a startup (i think i first saw Keyona Meeks share it) when I was trying to understand revenue and anxious about the quality. I highly recommend for ALL entrepreneurs. cc: Prosper HealthTech Accelerator A vision of Prosper Powered by gener8tor

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Being a founder is not a status symbol When I started Maera in Panama, I never called myself a founder. I didn't call myself anything, I just did the daily work because I needed to pay rent and buy food. After moving into the US, people started telling me that I was a founder. Met a lot of guys with ideas that were looking to raise millions, and they were all founders. I decided to look for a meaning of founder in the startup scene and came up with: "A founder is a person who comes up with an idea (hopefully a profitable idea) and then transforms it into a new business or startup." 90% of the people I met, qualify at the idea part; the profitable angle, quite a different story. From my limited experience in the US startup scene, I've noticed that profitability is not a priority of a lot of founders, but being a founder is; the way they want to grow their company is by raising the next round, and just pumping the valuation of their business. That's ok for some businesses, but I'd like to challenge the status quo. What if we all decided to see profitability as something important and aim towards it sooner than later, and just make a business that runs by itself. I understand that there are highly capital intensive businesses that don't quite fit the rule, but let's be honest, most of the companies being started out there are not those type of businesses. Back in Panama it's simple. If your company doesn't make money, you will shut down. In the US, it used to be if your company doesn't make money, someone will give you more money. This has been changing and it took a lot of companies by surprise, because they got used to depending on getting more money to save them when needed. Either you call yourself a founder or not, just remember that it's not a status symbol. It's a responsibility. If you decide to launch a business, hire people, raise money, etc., you are responsible for all of that. Every employee is a human being with family and responsibilities too. The money you got from an investor, was money that someone that to produce and now is trusting it to you. Honor the trust your team, investors, customers and all around you are giving, and make something out of it. As Tony Robbins say, where focus goes, energy flows. So how about we all start to focus on making good companies that are profitable and that are able to provide jobs and value to the marketplace.  

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I attended Dynamite Circle Mexico in Playa Del Carmen. DC is a community for location-independent entrepreneurs. This was my first time attending their second largest conference (biggest is Bangkok). 5 ideas from the event (that I can't stop thinking about): 1/ Find like-minded peers sharing your business model, not industry. I was lucky to join a mastermind group with course creators. Their businesses spanned finance, supply chain, spirituality, college admissions, and other industries. It was a light bulb moment for me when I realized that despite coming from diverse industries, we wrestled with similar challenges and issues. Going forward, I aim to meet more course creators. 2/ Facilitate lightning round meet-ups to create connections. DC Mex organized a dozen meet-ups around themes, e.g. SaaS, consultants, etc. Attendees broke up into small groups introduced themselves, where they can help, and where they need help. I met many folks through these small groups. Coincidentally, I started executing this format for my cohort program’s live sessions at the same time, which helped connect students to each other. 3/ Be cautious about doing the same thing over and over—and expecting different results. Without giving away any details (DC is a private group), this is a common refrain I heard: If your business isn’t growing, it’s tempting to put your head down and grind harder doing the same thing as always. However, sustainable growth came after founders got courage to make the deeper, structural changes to their businesses they had been avoiding. 4/ Do the things you’re most afraid of. I was discussing a business decision I had to make with a new founder friend. I asked her, how does she pick between competing options? She said something like, "I do what scares me the most." This line jolted me out of my naval gazing. It was the reminder I needed to refocus on what truly mattered to me and not what was considered to be a popular business “best practice.” 5/ Use groups like DC for accountability. Bootstrapped founders I know don't have a board or investors. But they still want to share their progress. I observed several people use DC conferences like a business review. They generate new hypotheses from the event, execute for 6 months, and then report on their results and learnings in the next conference they attend. If this resonates, repost to share with others ♻️ and follow Dexter Zhuang for more in future.

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Before I even knew what a Venture Builder was back in the day, all I pretty much did on a day to day basis was validate and launch little businesses with the goal of getting them to $10k per month in revenue. Once I got to that point I'd ask myself a few questions: "Can this thing go on without me? If I hire someone, can the revenue cover the costs and potentially make a profit? How big can this really get?" If the answers were: No, No, Not very big. I'd scrap it and shut it down. Yes, Yes, Big enough to be worth proceeding. Then I'd start the CEO search and start raising. I'd say that 9 out of 10 were scrapped, but that doesn't mean that I/we (investors) lost any money. Most of the time we all made out pretty good in such a short period of time. Venture Building is a lot of fun and can make you a lot of money if you follow the process, stay lean and make the hard decisions based on data.

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The South Park Commons Founder Fellowship application is live for Fall 2024! If you're considering becoming a founder but are early and/or pre-idea, this is for you. When I found out I was accepted the inaugural Founder Fellowship, I was still working as a product manager at Lyft and had started to imagine "eventually" founding a company. I had worked as a startup employee at Kamcord (acquired by Lyft) and on a number of 0-to-1 new products at Lyft throughout hyper-growth and the IPO. However, I worried I wasn't "ready" as I did not have a specific idea, cofounder, or the personal runway to see myself quitting my day job focus full time on founding a company. Personality-wise, I typically go all-in on my work (and was so while working at Lyft) so starting a side-project would not have been an effective option for me. Thanks to Mishti forwarding me a tweet, I learned about the Founder Fellowship and applied - a day after the deadline (but hey, the Airtable form was still up). The opportunity to explore finding my life's work without the ticking clock of an arbitrary demo day really appealed to me. The Founder Fellowship opportunity flipped my thinking from "I'm not sure I'm ready" to "why not now?" and gave me the confidence to make the transition sooner. Becoming a founder certainly has not been an especially easy or simple path, but it's one that I have learned so much from already - and continue to do so daily. The only way to find out if you're ready, in my experience, is to dive in and just do it. I'm also deeply grateful for the chance to work on problems and ideas I deeply care about, most recently with CodeYam and the chance to apply what I've learned in past roles in product management, product marketing, and in my current role as a founder to try to radically improve the software development process. I love the magic of seeing something you build in the hands of customers who are benefitting from your product. Using software simulation to make it possible to craft great software products, faster, is really exciting to me. At South Park Commons, I met an AMAZING cohort of talented founders, builders, and technologists. I also met my cofounder Jared Cosulich and together we dove into new technologies, wild ideas, challenging problems, and a supportive community of incredible people. We met our first hire through an early side project with SPC members and alumni, and have had the incredible experience of getting to collaborate with and learn from others in the community throughout our journey. TL;DR: if you think the Founder Fellowship *might* be for you, just apply.

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Over the years I’ve seen the post going around in various forms of how Bessemer Venture Partners keeps a *robust* anti-portfolio on their website. It’s fun, self-aware, humbling, and differentiating. If you haven’t already, go have a look. (As an aside, I’ve been to their offices in Cambridge multiple times back in the day while visiting Kent Bennett, the venerable Felda Hardymon, my dear friend Steve Papa (if Steve was capable of “friendship”), and the young(er) founders of a company called Toast - Bessemer wallpapered their bathrooms with the rejection IRMs of said anti-portfolio). Anyone who has been in the game long enough probably has their own version. Companies they could have invested in, but passed on, only to be made a fool when said company later becomes a decacorn. My personal opinion - and I tend to think one that Bessemer shares - is 1) we all make mistakes, 2) we’re human and at times quite dumb, and 3) hell, at least we had access in the first place. Venture investing is about seeing as many amazing opportunities as you can, even if sometimes that means missing a few…dozen. Either that or I’m totally full of shit and we’re just plain idiots. What do I know. I’ve only been doing this for three years. ¯\_(ツ)_/¯ In any case, in the spirit of giving myself a Father’s Day gift of crow, which I plan to eat, here are some of mine: Toast: not sure if Steve P would have let me into his $4M or whatever it was round never mind the Seed or the A, but I feel like I could have convinced them. Steve F and Aman said they were going to fully rebuild a POS after running into integration nightmares with Micros, Aloha, et al, and I thought they were crazy. Old industry incumbents. Entrenched. Insert foot in mouth, and then pull it out and use it to kick my own ass. Klaviyo: TJ Mahoney was a pre-seed investor and he told me about it. Said AB was a stud. I passed without even talking to them. $8M valuation or around there I think. Shopify ecosystem play? Ew. Sigh. I’m a dumbass. Pillpack: mentored TJ a bit early when he was having some team stuff going on at Techstars. The hippie. $4M post or something. Said no. Whoops. Drizly: Nick Rellas kept stonewalling me, the little twerp, but pretty sure I had a small spot. Pat Kinsel would have got me in. Slept on it. Round closed. I’m an idiot. Draftkings: met Jason at a dinner and Ryan Moore told me to hop in at pre-seed - I already had a small play with a competitor. Jason and I became great friends (which we are to this day). Really knocked that one out of the park. Way to go, Phil! Good eye! Anyway, PLENTY more where that came from and I’m sure I’m currently in the process of creating one of the world’s most epic anti-portfolios at Impellent Ventures. But, again, c’est la vie. Better than sitting on the sidelines and wondering what could have been. At least I know what could have been - a gazillion more dollars than I have right now. Ah well. Batter up! *p.s. I’ve had some winners, too ;)

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🌟 Founders! How are you running your team? 🌟 I am transitioning away from my previous startup to working full-time on FinCastAI! I’m blessed to have worked with some talented pros over the years. Here is what I’ve learned about running a team! -> Focus on Results: Instead of obsessing over every detail, I focus on the end goal. I trust my team to get the job done without unnecessary interference. It's about empowering them to take ownership of their tasks and responsibilities. ->Trust and Transparency: I am transparent about the job expectations and responsibilities. Everyone knows what’s expected of them, and everyone knows what is expected of me. I trust them to deliver without being micromanaged. -> It’s a 2-way street: It is my responsibility to make sure my team has everything they need to get the job done. It’s my job to clear obstacles so they can perform. -> Respect and Autonomy: This isn’t kindergarten anymore. I treat everyone like an adult, with respect and trust. My team members are professionals, and they deserve to be treated as such. -> Get Sh*t Done: At the end of the day, it’s all about execution. Clear objectives, autonomy, and accountability are key. My team knows what needs to be done and has the freedom to do it in the best way they see fit. -> Hire Problem-Solvers: Make sure you hire people who can figure things out. The ability to navigate challenges independently is invaluable. It ensures the team can move forward without constant supervision and adapt to new situations effectively. -> Communication: Timely communication is key. Make sure your team knows that you are there to support them whenever they need it. Having spent a few years in the banking industry, one memory that stands out is how much I hated being micromanaged. My manager was constantly looking over my shoulder, and it felt annoying. Trust your team! Focus on results, and embrace flexibility. Leading is not hovering over your team but giving them the best environment to get sh*t done. Founders! I would love to learn how you run your team! Share your experiences in the comments below! 👇

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Are you looking for quality without breaking the bank? Imagine a lifeline that doesn't just save you money, but turbocharges your startup with a rush of efficiency and quality. 🌎 Welcome to the world of #Nearshoring. Picture this: You're a startup in Denver, your development team is in Mexico. Same time zone No more pesky late-night phone calls Or Waiting for what seems like an eternity for email replies. That's the power of Nearshoring. But there's more than just time compatibility. You're diving into a fresh talent pool, slashing operational costs, and aligning cultures. You're turning traditional challenges into strategic advantages. Don't mistake nearshoring for another outsourcing buzzword. It’s the strategic partner your startup has been hunting for. It’s the key to assembling a global team that breathes and works together in real-time. It’s the weapon that will keep your startup a step ahead in the ruthless battleground of today's market. In the high-stakes race against time and competition, nearshoring is your startup's secret weapon. Ready to unlock its potential? #QualityAffordably #EfficiencyBoost #NearshoringAdvantages #GlobalTeam #StrategicPartnership #StartupSuccess #RealTimeCollaboration #SkilldLabs

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Which is better? Last week, Sandra Aguirre made a Crunchwrap Supreme at home. It looked amazing. So, I tried to recreate it myself. Judging from the picture on the right, you might say I failed miserably. But... I still found my Crunchwrap to be delicious. So, not total failure. In the years we’ve been building Repeat, I can think of at least a dozen times where we’ve envisioned a product feature and ended up with something that looks different from the initial vision. Never, though, has that been a failure. 0-1 product building often starts with a grand vision. Failure only happens when we stay married to the “grandness” of that vision, instead of the spirit of that vision. It can be hard to put the focus in the right place, but it has allowed us to ship much better product, much faster at Repeat. We’re willing to make an “uglier” Crunchwrap (compared to what we dream up) and improve it with our customers. Turns out, that ends up being just as good.

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An idea i've been playing around with. Creating a guild that all current company + company alumni can be apart of. This way, even though a company cannot be family, it can be a long term professional relationship. Guilds are broken into pods/teams: * Networking opportunities * Mentorship programs * Resource sharing * Events and Workshops * Job board + recommendations (this one can get tricky looking into) * Community support * stock investment opportunities What do you think?

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Every early-stage startup NEEDS someone who just… Gets. Sh*t. Done. But they come from the most unexpected places. In my first Startup, we had a Business Dev Rep named Alex. He could have clocked in and out, dialed off the list, and read from the script, but Alex was enthusiastic about Revenue Operations. • He took Salesforce Admin courses. • He thought up ways to optimize workflows. • He tied day-to-day tactics back to our broader strategy. I was repeatedly impressed when we spoke because he always came armed with solutions instead of just complaining about issues. That’s why he was promoted to Salesforce Admin and earned the matching pay raise. Alex and I both left that Startup around the same time. He started a consulting agency. And I joined Webgility. When I came aboard, we desperately needed a Revenue Operations guy to help us overcome an obstacle with our CRM. Someone who just… Got. Sh*t. Done. I knew exactly who to call. Alex’s agency consulted for us, and they got our Salesforce instance to a much better place. We couldn’t have done it without him. I sleep easier knowing I can count on guys like him whenever we need help. You’re going to come across a lot of different personalities in startups, but people like Alex seem to come along when you least expect them. Be on the lookout for those who aren’t satisfied with the status quo. They come equipped with ways to innovate.  They raise their hand to get involved. They show real ownership. Keep them close, and your Startup will be 10X better for it. P.S. Do you know anyone who just… Gets. Sh*t. Done? Show them some love and recognize them!

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More hours does not mean more success 🤦‍♂️ We shouldn't conflate the actions of hyper-conscientious people with some idea of the "correct" way to do things. These people would put 18 hour shifts in at Starbucks, because they don't know any other way to be. It's a sign of low-fidelity thinking to state so brazenly that founders must work 18 hour days or they won't be successful. These people and these businesses represent the 0.1%. They're not an example to be followed for 99% of people. Remember, for each of these 'work themselves into the ground' types, one or two might be successful, but half of the rest die of a heart attack in their mid-40s. There are millions of founders who built successful businesses as side hustles. Some did so on auto-pilot, or even taking the good-old 'doing the amount that is required' approach. We ought to be teaching others how to live successful, sustainable lives. We should desire a world full of successful, sustainable businesses. Not some kind of rockstar founder dream that many of these people are so desperate to see themselves as.

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How to pitch: The company has zero traction —> “We’re early” You only have 2 customers —> “We’re working with design partners” You currently have no revenue but hoping some pipeline finally closes —> “we’re on track to exit this year at $3M ARR” You’re in the natural kill zone of a FAANG —> “We view them as partners rather than competitors” There’s no way the tech can actually work —>“We’re manifesting the future” And of course: One of your developers uses Co-Pilot to write some front end code —> “We’re an AI company”

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I play tennis w/ Shep every wk these days. Of course I'm turning it into content. Two takeaways from our Wimbledonesque match. It pains me to say it, but Shep is better than me. More skilled. Better fundamentals. 10 years younger. Just overall, a better tennis player. By all measures, he should beat the sh*t outta me whenever we play. He does, sometimes :) Most of the time though, I keep it respectably close, and entertaining. Sometimes (like yesterday), I even pull out a magical win. How? I am unbelievably stubborn on the tennis court and in general. I am a pain in the ass to play against and run around around a lot. I get to most shots. I make it hard on Shep. I just refuse to let people out work or out effort me. I'm also in pretty good shape, maybe better shape than Shep. TAKEAWAY 1: stubbornness and effort can beat out talent. Truly, just trying harder than your competition -- outlasting them, cn beat out significantly more talented opponents. A lot of people, prefer to play with people at their own skill level. Not me. I want to play with those better than me (within reason). I don't want it to be boring for them, but as long as I can keep it close, I'm getting better. Shep elevates my game. He forces me to hit shots I'm not used to be hitting. He forces me, frequently, to figure out this mythical backhand I hear so much about. He makes me an overall better tennis player. TAKEAWAY 2: if you're always the best player in the room, it may be time to find a new room. If you see me hobbling around today, now you know why. Tennis anyone?

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A recruiting agency made $82k in their first month of recruiting on Paraform - that's $1M in equivalent annual billing! John Keenan and his brilliant team at Continuity Partners (shoutout Brianda Reyes Castro and Lona H.) are making a placement every week on Paraform at some of the most exciting companies. John was one of the early recruiters at Palantir Technologies, and joined Continuity Partners in 2007 - he claims (and hiring managers on Paraform seem to agree) working with him will be the most fun you can have talking to a recruiter. How was his team so successful? He broke it down for us: “Recruiters make money by doing the same search over and over. Not by placing one-offs. The best way to grow your business is to find a lot of people, find a lot of jobs, and build a pipeline...and Paraform makes that much easier, it's awesome.” Want to read the full story on how he does it? Check out John's article in comments 👇 Congrats John and team — we’re looking forward to seeing your continued success!

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Confession: Raising my first $1M was one of the hardest things in my career. As a 5x founder with 3 exits, I've now raised over $130M+ in capital. I'm passionate about helping the next generation of underrepresented founders succeed in the tech industry. So, I've opened up 5 exclusive 1:1 mentorship slots on Intro. 10% of proceeds will be donated to the Latino Corporate Directors Association (LCDA). What can we cover together? ✔️ Fundraising strategies and overcoming barriers ✔️ Mergers and acquisitions guidance ✔️ Scaling your business effectively ✔️ Building and hiring high-performing teams ✔️ Career advancement and breaking into the C-suite Honored to be on Intro alongside world-class experts like Manjot Pahwa (former CEO of Stripe, India. VP at Lightspeed), Shankar Kumar (Global Exec, led $1B Business Turnaround at Caterpillar Inc.) & Morgan Polotan (Partner at monashees Investments ($3B hedge fund). Ex: Comcast Ventures). Comment “interested” and secure your spot now: https://lnkd.in/eBifjGVi

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These guys turned a ping pong joint into a $50M tech company. And it's barely been 4 years. It's a crazy story and I wanted to learn more. The company's called PingPod. It was founded in 2020 by David, Max, and Ernesto. It started with a single spot in NYC. Now they have 15 locations in 6 cities. And zero employees. Here's the PingPod playbook. 1/ Make sure it works Rewind to February 2020. The guys open a ping pong "pod" in NYC. And they optimize every part of it. The lighting, the tables, the pricing, the equipment. Tweaking and toning until it's just right. After a few months, they're pulling in $800/day. Expenses are running $600/day. That's a 25% profit. It's working. Time to hit the gas. 2/ Scale with cheap real estate The ideal PingPod is 2,500 square feet. In areas with lots of foot traffic. And in 2020, there's plenty of it available. Covid-19 is pummelling the real estate market. Landlords are desperate to fill their office and retail space. And PingPod is here to grab it. Our boys negotiate sweetheart deals in New York, Brooklyn, and Queens. Within 24 months, they're at 4 locations. 3/ Automate everything PingPod keeps labour costs down by automating the whole experience. Customers use the app to reserve a table, unlock the door, and pay their bill. And it gets better. The app has fun features. You can control the lighting at your table and watch video replays of your game. All this automation means zero employees. 4/ Let’s talk pricing Booking a table will run you $15 - $50 an hour. It all fluctuates based on timing and location. For power players, PingPod offers a membership. That ranges from $60 - $120 a month. You’ll get discounted tables, first-in-line access, and other perks. Whatever you choose, PingPod is getting paid. 5/ Horizontal expansion This is all working for the ping pong crowd. But could it work for other stuff? Oh yes. Next up: pool halls. In 2023, PingPod scoops up Sharks Pool Club. They quickly revamp with the fancy app and more services. In under a year, revenue is up 76%. 6/ Productize the tech Now for the grand finale. Ping pong and pool halls can be a good business. But the underlying tech might be even better. So last year, the crew launched PodPlay. They've taken their entire tech stack and turned it into a SaaS product. And they raised $10M+ to grow fast. From fitness centres to pickleball courts, PodPlay is hustling to dominate the market. And it all started with a ping pong joint. #marketing #growth #brand P.S. Enjoy this? Then you’ll love my newsletter. My best stuff direct to your inbox. Plus I’ll send you a free chapter from my new book, coming in June. Hit the link in my profile to subscribe.

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