Are you struggling to fund your startup? Learn how to make your idea investable – and avoid the fearsome 'zombie zone'.
In this episode, Chris Saad and Yaniv Bernstein discuss:
- Quarter Masters: Explore a simple four-quadrant model that categorizes startups based on their margin, volume, and startup costs.
- Plain Old Profits: Learn when and why to consider a more traditional business model over a startup approach.
- VC Victory: Discover the sweet spots for venture capital and how to leverage them.
- Beauty and the Beast: Recognize why the 'Belles of the Ball' are so attractive to investors.
- Smart Assets: Understand why WeWork wasn’t Uber – and never could have been.
Don't miss out – tune in now to gain valuable insights into the complexities of startup funding and growth.
00:00 Intro
03:36 Margin and volume (X axis)
06:17 Startup costs (Y axis)
07:36 The four quadrants of startup economics
09:03 The ‘Plain Old Business’: low margin, low volume, low startup costs
12:44 The ‘VC Sweet Spot’: high margin, high volume, high startup costs
14:09 Investing vs. losing money in startups
19:23 Understanding future cash flows & the long game
25:49 The ‘Zombie Zone’: high costs, low margins
27:48 Success stories and cautionary tales
31:19 Why WeWork wasn’t Uber
35:41 The ‘Belles of the Ball’: high margin, high volume, low startup costs
37:02 VC vs. bootstrapping
45:53 Personal reflections and advisory insights
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Key links
The Startup Podcast is sponsored by Trilligent. Trilligent is your startup's one-stop-shop for regulatory, PR, and international expansion advisory. Their unique startup-friendly offering is essential for any startup looking to go beyond their home shores or deal with complex regulatory environments. Go to https://trilligent.com and book a call with their COO Laura to learn more – tell her we sent you!
The Startup Podcast is also sponsored by Vanta. Vanta helps businesses get and stay compliant by automating up to 90% of the work for the most in demand compliance frameworks. With over 200 integrations, you can easily monitor and secure the tools your business relies on. For a limited-time offer of US$1,000 off, go to www.vanta.com/tsp.
Get your question in for our next Q&A episode: https://forms.gle/NZzgNWVLiFmwvFA2A
The Startup Podcast website: https://tsp.show
Learn more about Chris and Yaniv
Work 1:1 with Chris: http://chrissaad.com/advisory/
Follow Chris on Linkedin: https://www.linkedin.com/in/chrissaad/
Follow Yaniv on Linkedin: https://www.linkedin.com/in/ybernstein/
Editor: Justin McArthur https://www.linkedin.com/in/justin-mcarthur
Intro Voice: Jeremiah Owyang https://web-strategist.com/
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