Some interesting links we found across the web this week:
How a VC Wants to be
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
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.
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