BC STARTUPS
Saved by @zmbnski

1/ I feel like breaking some rules today. Let's get transparent and have an open discussion about management fees in VC to help other emerging managers. The standard fee structure is 2% the size of the fund every year for 10 years or the life of the fund.

#vc #startups #funding

 2/ This means if you are an emerging manager raising a micro/nano fund of let's say $10M, then you get $200K a year for operations. That $200K pays for legal, fund admin, accounting, expenses, and your salary. basically that 2% doesn't go very far

#vc #startups #funding
3/ This is in contrast to a larger fund, let's say $100M fund where 2% is $2M a year. This is why some LPs (those who invest in funds) are looking for smaller management fee which is unreasonable for micro funds which many diverse managers are raising

#vc #startups #funding
4/ Now at RareBreed Ventures we structured our fees to be 2.5% for the first 5 years and 1.5% for the last 5 years. This comes out to the standard 2% but front-loaded in earlier years

#vc #startups #funding
5/ This means when we hit our target of $10M (if you want to be an LP our min investment is 10K and you can go to https://t.co/dm6ywrNFnU). We'll have 250K for the first 5 years giving a little more cushion for operations and allowing me to bring on a hire

#vc #startups #funding
6/ That seemed like the best option for me because it still keeps the fees at 2% overall and we are essentially making the bet that in 3 years or so we'll raise fund 2 which will be larger (our goal is $50M)

#vc #startups #funding
7/ The important thing to note here is the raising of new funds every 3 or so years. in our case let's say we close a $50M fund with the standard 2% fees in year 4 of our fund 1. Then we will be getting fees from both fund 1 & fund 2 which make life easier

#vc #startups #funding
8/ To this point @Nivo0o0 from @ShrugCap gave me some of the best advice ever and I wish I had gotten it earlier in my fundraising journey

#vc #startups #funding
9/ Basically @Nivo0o0 suggested front-loading the management to 4% but then only taking fees for the first 4 year. This leads to lower fees over the full 10 years while giving you more money to work with when getting started

#vc #startups #funding
10/ His point with this is if you do what you say you will, you'll raise fund 2, and then you won't need the fees from fund 1 anymore. I think this is really smart and appealing to LPs because its less fees overall and more money for investments

#vc #startups #funding
11/ I'd love to hear other thoughts on this topic so we can educate other emerging managers.@Samirkaji @DSox @davidrgoldberg @ceonyc @chudson @johnhenrystyle @MyDailyPosts @Jai__Malik @jasonlk @roybahat @PDXStephenG @minal_hasan @dunkhippo33 @yoheinakajima

#vc #startups #funding

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If you’re a SaaS entrepreneur, you need to study Hubspot

Here are the inbound strategies they used to grow from 0-100M+ users📈

A thread: 👇👇

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The blog resulted in 20% of their organic leads and 3x their leads
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Justin Jackson
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@mijustin
A lot of bootstrappers think they have a marketing problem:

"I need to get better at marketing."

But, it's more likely that you have a product problem:

"Do customers really want this? Do they care enough about this to switch to a new solution?"

☝️ this is why most of my book, @marketingdevs, is about:

1. Choosing the right market
2. Building something they want

"If your product is remarkable, getting noticed is a lot easier." – @peldi


I was reminded of this concept again this morning while reading @pjrvs' book (Company of One):

"Sales increase when you honestly evaluate what someone needs and then teach them the value of what you're selling."


To succeed, your product has to offer an outcome that is highly desirable to a large group of customers.

The number of sales your product receives is a multiple of these two variables:

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@jamesg_oca
Starting a startup is hard. This thread will contain some key advice I think are particularly noteworthy:

1. “If you’re not embarrassed by the first version of your product, you’ve launched too late.” - @paulg The first version of my product was not great, but hey, it worked.

2. Don't build in a vacuum. You should build your product out in the open for the world to see. You will gain valuable feedback from users if you build publicly, and provide insights which ensure you are building a product users truly want. cc @rrhoover @sama

3. As a young founder, a massive weakness is age and the lack of credibility. Developing partnerships, trying to acquire customers. etc have all taken so much longer. In fact, when I mentioned my age, a few investors just walked away. cc @Jason

4. Work on what makes you feel excited. Working on something that you don't believe in will cause you to make rash product decisions, resulting in loss of user loyalty. @fredwilson

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Sergio Mattei
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@matteing
Makers, we need to talk.

We have a culture problem, and it's starting to bite back.

Our launch-and-dump culture on @ProductHunt is harmful, and it's hurting our goals as a community.

👇

Let's get started with a bit of backstory...

I was told today about an event that shed light on a recent change to the PH ranking algorithm

A maker on Ramadan Makers launched a product, reached a decent amount of upvotes. They never made it to the homepage.

Quite frankly, this is fine. We really don't expect ALL maker products to reach the homepage, considering PH should probably have a quality bar.

However, looking at the homepage just showed a different picture: products from bigger companies with only 12 upvotes, featured.

This is a problem: it is probably now a little harder for indie or products from creators to get featured on the homepage, which sadly is a huge problem for most rising and new makers on the scene right now.

But there's a bigger problem, and it's a culture one.

Makers nowadays have a very harmful culture when it comes to launching on Product Hunt.

This is the usual product lifecycle nowadays:

1. Launch on PH, Twitter
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Cathryn
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Choosing a business partner could be the 2nd most important relationship you ever choose (after who you marry.)

I just got out of a 5-year partnership that had become toxic.

Here's where I went wrong.

👇🏼👇🏼👇🏼

1. If business partnership was like marriage, I'd married someone that I'd only been on a few dates with and barely knew.

I partnered out of insecurity with someone who talked a good game and seemed strong in the areas I felt weak.

This insecurity cost me $$$

2. Questions I wished I had asked before taking on a partner:

- What are my goals for this business?
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3. Qualities to look for in a business partner:

✅ Financially sensible & secure
✅ Shared vision & goals
✅ Emotionally intelligent (high eq > high iq)
✅ High integrity
✅ Similar work ethic

4. How to split equity

50/50 isn’t a business decision, it’s a settlement.

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SK
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@sk_diary1
#DoYouKnow -The place where
Lalitha Sahasranamam -1000 names of Devi originated.

It is in Lalithambigai temple -Thirumeeyachur,Near Mayiladuthurai,TN

There is a Legend #story & it is related to this beautiful #sculpture of Kshetrapuraneswarar & Ambal Lalithambigai #Thread 👇


#Legend #story
It is believed that this is birth place of Kashyapa Maharishi’s sons, Arunan& Garudan. Arunan(charioteer of Surya)was physically handicapped.He was a Shiva devotee.Arunan wanted to visit Kailash to have Shiva Darshan,but Surya Dev denied permission.

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Nicolas Cole
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@Nicolascole77
🚢 Atomic Essays Republishing Framework 🚢

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5. Copy/paste again on Medium.
6. Again on LinkedIn
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Guide below ✍️🚢👇

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I really enjoy writing right inside the Figma template. It helps give me a good sense of exactly how much "real estate" I have/have left before my time us up and I'm out of space.

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or...

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Step 4: Find relevant Question on Quora. Copy/paste Atomic Essay + image.

Search on Quora around the topic you wrote about. Find a related Question. Copy/paste the whole Atomic Essay as your "answer" (& fix formatting). Then include image so it appears in the thumbnail.
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