Some interesting links we found across the web this week:
How a VC Wants to be
Pitched
Raising capital can be a daunting task for many startup founders
who are unsure about how to best pitch their product or business
idea to potential investors. In this article from
Entrepreneur, the Chief Marketing Officer of Prezi
provides a number of key takeaways from her discussion with Andrew
Braccia, partner at Accel and early investor in companies such as
Slack and Squarespace, on how to make a compelling pitch
presentation to venture-capital investors.
Why Unicorns Love
Recessions
The idea of a looming recession may have the effect of deterring
potential founders from launching their products, or deterring
potential investors from making risky investments in early stage
startups. However, this VentureBeat article suggests that
there are opportunities in economic downturns, as they reduce
competition and free up the market for new players and ideas. Check
out this article for a discussion of companies that have proven
successful in the face of a recession, and tips on how your startup
can position itself to do so as well.
How Startups Help Cities Measure Their
Economic Development Frontier
Startups can serve as a reliable metric for evaluating a city's
economic development, as they have the potential to achieve
technological breakthroughs, create new markets and foster
employment opportunities. As a consequence, many cities and states
have prioritized technological entrepreneurship. This article from
Brookings discusses the concept of the "economic
development frontier", i.e., the local companies on the cusp
of achieving significant and valuable product and process
breakthroughs, and why community leaders need to be able to
identify them.
Founder Compensation: The Good, the Bad,
and the Suicidal
Founders are critical to their startup's success, and should be
compensated accordingly. However, determining the proper level and
method of compensation can depend on a number of factors, and some
compensation policies can have devastating effects on the startup.
This AlleyWatch article sets forth a number of
"good" compensation policies, from time-based or
milestone vesting to an incremental cash-out program, and critiques
a number of "bad" and even "suicidal"
compensation policies, such as granting founders too much equity
relative to their employees, or basing founder compensation on
initial cash contribution.
Links compiled by Elizabeth Brasher.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.