What is Digg?17 Comments
- kurtwinter, on 10/10/2007, -0/+6Rule #1 - Stay away from investors. Do it on the cheap until you have reliable cash flow. Rule #2 - Borrow money from lenders, don't sell your company away. Rule #3 - Don't hire anybody - pay contractors instead, until 1 and 2 are met, then hire your most important employees at slightly above market and your most easily replaceable at market. Try to find a lender that will manage benefits for you. Good luck.
- kingkilr, on 10/10/2007, -0/+4Do you not know how to spell digg? Oh, and no problem.
- FunkyToez, on 10/10/2007, -1/+5Based on this Kevin Rose will be walking away right now with less than 2 million for Digg. Suddenly the 60 Million Dollar Kid turned into the 2 Million Dollar Kid
- Duncan3, on 10/10/2007, -0/+4Never ever go near a VC. Their job is to take your company and ideas away from you.
Find another way. - DSGalvin, on 10/10/2007, -0/+3I'm 17 and I understand this...
........with the help of Wikipedia.... - DonDodge, on 10/10/2007, -0/+2Kevin Rose didn't take multiple rounds of VC money, so he wasn't diluted down to 2%. The key is keeping your expenses low, gaining user traction/revenue, and getting cash flow so you don't need multiple rounds of VC money.
My next post will be on cashflow and burn rates. - Randinn, on 10/10/2007, -1/+3Just what are you babbling about.
- MajorD, on 10/10/2007, -0/+2Provide a reason to not read the article and you might not get dugg down. I thought the article was at least insightful.
- iffypop, on 10/10/2007, -0/+2Calculate, calculate, calculate, then romance the VCs into exceeding your wildest calculations..
- jmpeagle, on 10/10/2007, -1/+3VC used to invest in under 1 million projects but now their ambitions are so large that they no longer fund businesses unless they can invest at least 6-7 million in them.
So when you use up the three F's (friends, family and fools), you are stuck with Angels of whom you have no idea what their fees or business practices are and how much they will interfere in your company. - inactive, on 10/10/2007, -0/+1VCs are scum. They want to see the hockey stick projections (even if they aren't real) and they want you to provide them with five times the cash flow in months....Not only are they unrealistic, they are also unreasonable when you explain it is IMPOSSIBLE to do this.
Also see kurtwinters post in this thread. Let me add to that
#4 Don't pay yourself more than you can afford. A lot of people see the first round of money coming in and give themselves a raise, pump it back into the business and take the raise later.
#5 Don't believe the hype. It takes a while to get off the ground. You'll be in the red for the first couple of years (it sucks), but after that you'll break even or even be in the black. Being in the red is more than just financially in the red, it's also work and time invested. Just be ready to not see much of an outside life for the first year of your business. After that things calm down and you get a good flow. - DonDodge, on 10/10/2007, -0/+1If you are working for a startup it is a good idea to understand how this works. If you are thinking about starting a company it is absolutely vital that you understand this stuff.
- DarioBartle, on 10/10/2007, -0/+0Blessed is he who has learned to admire but not envy, to follow but not imitate, to praise but not flatter, and to lead but not manipulate.
- RobinYonker, on 10/10/2007, -0/+0We are only now on the threshold of knowing the range of the educability of man-the perfectibility of man. We have never addressed ourselves to this problem before.
- Andysan, on 10/10/2007, -4/+1What the hell is this doing on Digg? Too many big words!
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