Category startups

Upside and Downside

Heidi Roizen has yet another great post this week: “How to Build a Unicorn from Scratch – and Walk Away With Nothing.” Every budding entrepreneur should read it. Her post isn’t just about valuations and terms. It is also about thinking through downside. In frothy times, especially when equity starts to feel more valuable than cash… Continue reading

The challenge of a hedging model

A couple days ago, I wrote about entrepreneurship and some level of partial hedging. Actually solving that challenge is, of course, enormously difficult. So much so, that I think it might only really be doable when companies are just starting out, and the equity is worthless. I can see it working in a startup studio… Continue reading

The Stupidity of Entrepreneurs

I was hanging out tonight with a bright young man who said, “A great entrepreneur always bets on themselves.” Context: we were talking about hedging. I asked the question: what if founders could hedge themselves against other startups so that if your company failed, you still had a chance for upside? He disagreed. He felt… Continue reading

Startups: Don’t Wait to Build Exit Relationships

Paul Graham’s latest essay warns of losing time and focus to “corporate development” staffers out there sniffing for companies to buy. I agree with him on the corp dev side. But I wouldn’t want people to think that you should ignore potential buyers until “you want to sell your company right now.” It’s a question… Continue reading

Fighting Our Own Biases

In 2010, I became minorly Internet-known as an early adopter of lean startup. I blogged as I went. I made plenty of mistakes. One was not defending adequately against my own biases. I have a soft spot for entrepreneurs of any kind. That’s one of my big honking biases. Liz Crawford and I were working… Continue reading