Work Life Balance in Newly Developing Business

In the process of starting a new company, not explicitly a startup by the traditional sense here but i have big aspirations.

one thing i really struggle with is finding a work life balance, obviously this isn’t a 9-5, late nights, early mornings, working weekends, all sacrifices to be expected, but how much is too much? i found myself becoming reliant on caffeine too much, became dependent til i was sick, completely screwed up my sleep, and wreaked havoc on my mental health, obviously i pushed it too far. but i have other days where i set the entire day aside for myself, once every week… week and a half, and just laze around, maybe bake, run personal errands, and i always feel guilty at the end of those days, seeing nothing on my business to do list has been completed.

how do you handle work/life balance? making time for friends, family, significant others, sleeping, eating decent food, while still getting everything on your to do list done?

submitted by /u/room_willow
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

100% Bootstrapped Equity for Employees?

As a senior employee in a small startup, just got an offer with a 15% raise and a 1% stake in the company.

There is a 1 year cliff and then 4 year vesting period.

A unique aspect of this is that there has been no money raised. So, I am not sure how that changes things. But, psychologically, I feel like the founder isn’t as accustomed to giving out equity.

My gut tells me working my ass off for .25% equity a year and below my market rate for salary just isn’t a good trade-off. I will get a nice title and great experience, but they will work me for every ounce I am worth, for sure.

Does 1% seem reasonable as you help founders try to sell a company over the next 4-6 years?

submitted by /u/slocheeta
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

HELP: start a Blog for validating a potential user’s problem.

I want to validate that : – there is a real problem “X” for – a potential users “K” and consequently open a channel with the them. Can a blog helps with this? (Start a blog from 0) I was thinking that a Blog talking specifically to a problem X can help me filter people who actually care about it or they have the same problem/state of mind, and for so it would grow my chance to yes, understand if the problem really exist, but also identifies the potential users, if any.

submitted by /u/Andres98278
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

Looking for resources to estimate initial investment and ongoing costs for my startup in Canada

Like the title suggests, I'm looking for resources to help me budget the capital I need to get a software company started. I need to estimate ongoing monthly expenses as well. I've started a list of the potential expenses, but I'm sure I'm missing a few things. As I don't have the availability to develop the mobile apps (currently working full time) I plan to use freelancers and contractors. I will be doing this from home, so no need for office-related costs. Does someone here have experience getting a software / tech business up and running? It would be ideal if I could determine %'s for each cost. Here's the list I have so far:

One-time costs:

  • Design (logo, imagery, etc.)
  • Website development
  • Server setup
  • Initial mobile app (Android & iOS) development (MVP)
  • Incorporating

Ongoing costs:

  • Application hosting and monitoring costs
  • Customer support and account management (only after I can't handle these myself)
  • Software licensing fees
  • Subscriptions
  • Mobile app (Android & iOS) upkeep
  • Mobile app (Android & iOS) development
  • Data collection
  • Website upkeep
  • Miscellaneous (10%?)
  • Marketing (10% to start and increasing significantly after the apps are functional)
  • Payment processing
  • Insurance
  • Taxes
  • Legal

Any help is much appreciated. Heck, I even appreciate anyone reading this!

submitted by /u/dzubii
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

What are the best or most accurate/most common back of the napkin ways to value a company?

Mostly wondering about B2B and B2C software companies. If you know of any quick ways to get an estimate for either or both please share. Are there any that a potential buyer of a company would use more often than an investor or would it likely be the same calculation.

Any insight that you could give would be appreciated. Thanks in advance.

submitted by /u/lifelifebalance
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

No one knows what anything is worth

Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Click here if you want it in your inbox every Saturday morning.

Ready? Let’s talk money, startups and spicy IPO rumors.


It was yet another week of startups that became unicorns going public, only to see their valuation soar. Already marked up by their IPO pricing, seeing so many unicorns achieve such rich public-market valuations made us wonder who was mispricing whom.

It’s a matter of taste, a semantic argument, a tempest in a teacup. What matters more is that precisely no one knows what anything is worth, and that’s making a lot of people rich and/or mad.

This is not a new theme. I’ve touched on it for years, but what matters for us today is that there appear to be three distinct valuation bands for companies, and the gaps between them do not appear ready to shrink. You could even argue that they have widened.

Band 1 is the private capital cohort. These are the folks who valued Affirm at $ 19.93 per share in its September 2020 round and Roblox at $ 4 billion in February of 2020. Now Affirm is worth $ 116.58 per share, and Roblox is worth $ 29.5 billion. Whoops?

Band 2 is the long-term public investing cohort. These are folks critical in the IPO pricing context. They are willing to pay more for startups than the private capital crew. Affirm was not worth under $ 20 per share to this group, instead it was worth $ 49 per share just a few months later. Whoops?

Band 3 is the retail cohort, the /r/WallStreetBets, meme-stock, fintech Twitter rabble that are both incredibly fun to watch and also the sort of person you wouldn’t loan $ 500 to while in Las Vegas. They are willing to pay nearly infinite money for certain stocks — like Tesla — and often far more than the more conservative public money. Demand from the retail squad can greatly amplify the value of a newly listed company by making the supply/demand curve utterly wonky. This is how you get Poshmark more than doubling a strong IPO valuation on its first day.

Most investors do well in today’s world. Though Band 1 likes to blame Band 2 for not being willing to pay Band 3 prices, it always sounds like the private capital folks are merely complaining about sharing some of the winnings with another party.

Regardless, who really knows what anything is worth? I was recently chatting with an early-stage founder who has a history of investing — narrowing it down to 17,823 people, I know — about the price of software companies both private and public and why they may or may not make sense. He said that old valuation models at banks presumed that software companies’ growth would go to zero over time, and that profits would be rare among SaaS concerns. Both concepts were wrong, so prices went up.

But I have yet to have anyone explain to me why companies that would have been valued at 10x next year’s revenues can now get, at median, 18.1x. I have a working theory of what’s going on, but none of it points to sanity, or pricing that is grokkable through a lens that isn’t hype.

(You can hit reply to this email and tell me why I am dumb if you’d like. I will buy the person with the best valuation explanation coffee when the world works again.)

Milestones and megarounds

On the milestone front, it was a huge week for leaving the private markets and joining the Big Kid Club. Namely for Affirm and Poshmark, which priced well and started to trade. And for Bumble, which filed to go public. They are targeting a good IPO window.

But there was lots more going on, including a milestone that caught my eye. M1 Finance, a fintech startup that brings together lots of pieces of the fintech playbook into a single service, reached $ 3 billion in assets under management (AUM) this week. The company had reached $ 2 billion in AUM last September, after reaching $ 1 billion in February of 2020.

Why do we care? The company previously told TechCrunch that it works to generate revenues worth around 1% of AUM. If that percentage has held past its October, 2020 Series C, the company just added around $ 10 million in ARR in under half a year. That’s a pace of revenue creation that made me sit up and take notice. (Shoutout Josh for never shutting up about the Midwest.)

But I really bring up the M1 Finance milestone for a different reason. Namely that I am consistently surprised at how deep certain markets are. Neobanks that are still growing; the OKR software market’s surprising depth; the ability of M1 to accrete deposits in a market with so many incumbents and well-funded startups.

Perhaps this is why prices make no sense; if you can’t see the edge limits of TAM, can anything be overpriced?

Moving on, some quick notes on things from the week that mattered:

  • GitLab is now worth $ 6 billion and hit $ 150 million in annual recurring revenue last year. It grew 75%, we presume year-over-year in its most recent quarter.
  • Fintech upstart LendingPoint raised $ 125 million at an undisclosed valuation.
  • NYC-based Paige raised $ 100 million. It uses computers to help make diagnoses.

One more VC Visa-Plaid take

Aziz Gilani, a managing director at Mercury Fund and an advocate of Texas (observe his Twitter handle), wrote in late regarding our query for investor notes on the Visa-Plaid breakup. You can read the rest here.

But who are we to deprive you of useful notes. And Gilani is a nice person. So, here are his $ 0.02:

My big take-away on the Plaid/Visa deal falling apart is about how fast everything in 2021 is moving. Arguably the biggest advantage of SPACs over direct listings and IPOs is how fast those liquidity events can get done. In a world in which valuation[s] change week to week, the delays created by the DOJ can kill a deal – even if the DOJ would eventually lose in court.

I’m philosophically super negative about the government imposing their will, but I’m also personally excited about the current wave of insurgent startups not getting gobbled up by the FAANGs of the world. For the last several years too many startups fell victim to the “quick exit” mentality personified by Mint selling so fast to Intuit. With fast/cheap capital freely available, today’s crop of startups are going big.

Worth chewing on.

Odds/Ends

What a week. I have only a few things left for you, including some early-stage rounds that I could not get thanks to waves arms around generally but wanted to flag all the same.

  • Goldman Sachs chose Marqeta for Marcus. If you know what those words mean, they matter. If you don’t, congrats on having a life.
  • Nayya raised $ 11 million for what VentureBeat calls “an insurance benefits management platform,” including money from Felicis.
  • Minna raised €15.5 million for what Tech.eu called a “subscription management app.”
  • Muniq closed a  $ 8.2M Series A to sell a shake-sort-of-thing that could help with blood sugar control.
  • And from TechCrunch two more highlights, this neat Crossbeam round and more money for Moss.

Hugs,

Alex

Startups – TechCrunch

Best Creative Low-Cost Marketing Tactics

Hey everyone, so I have an interesting question, that I think goes against the grain of what is popular right now in the direct-to-consumer space. Right now the paradigm is to raise money, dump it into Facebook ads, grow unsustainably, and focus on profitability one day(?).

It makes sense, and it works for some companies, but what I'm curious about is what is the best low-cost marketing strategy/tactic that you have seen take a company to the next level.

Let me know what you think.

submitted by /u/GeorgeQuokka
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

I want to start a Tech startup but hate media attention.

A few months ago A freind and Myself began work on a startup idea i had, we are beginning to think about PR and Media (as this is key to the project). I Hate attention and highly value my privacy in everyway, My Co founder (My friend) Who knows over 35% of the company has offered to do the interviews etc, however i am worried that my fear of interviews and attention will cause us problems, For example: Once the dust clears and we sit down with our laywers and go though the paper work, He will be COO, I will be CEO as it was my idea, Thus, I want to control the overall direction of the company (I'm also the developer). But will it not be werid for the COO and Co Founder to do all of our interviews and will it cause a problem?

submitted by /u/VexGon
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

Created the wrong culture…how do I change it now?

I'm afraid the company culture we have simply isn't right. People in my startup are working office hours rather than startup hours and I don't believe we can succeed like this.

Moreover, we just brought onboard a Head of Product who is shocked by the slow speed that the team works at.

How do I change it? Do I push to change people or do I change people?

submitted by /u/gatom55
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

Got an offer to work part time at a startup with no salary but equity , product is cutting edge? Is it worth it ?

So I interviewed for a position at a startup company , the product is in robotics , the team seems very good however the position is no salary and only equity? I know it can be high risk , do you guys have experience with this type of arrangement? Any input is appreciated

submitted by /u/prettyserious21
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!