Startup One Stop

Good morning, All,

Last week we attended the preview of the next class of ER Accelerator startups – and were quite impressed at the caliber of the companies chosen (ER Accelerator Announces Class of Winter 2012: http://tnw.co/ycfo6i). We are admittedly a mentor in the program; it’s early days, and of course, time will tell. One thing did strike us: that these companies do have paths to revenue. Then again, this is New York, and in New York, we do mean business. We look forward to seeing what they build and it being a new year, being there gave us pause to look back as well. At the formerly much-touted Groupon, whose stock has fallen below its IPO price, as well as Zynga, whose stock price is going down, down, down – so far – and is nearly already 20% lower than its IPO price.

There hasn’t been much mention of the ‘b’ word yet this year (yes, bubble): the year is still young. We’re not big on predictions, but there are a few rules you might want to keep in mind as you forge bravely forward into this clean slate:
1. Don’t make a resolution – make a plan. And if you come upon a fork in the road, well, in the words of Yogi Berra, take it. At least consider it. It may be there for a reason.
2. Build a real business – something that’s needed and sustainable; that has a large market and actually fills a market need. Do you have a company, or a feature? Always a good question to keep in mind. VCs do. And you don’t always want to depend on the vaguaries of investors. They can be a fickle lot.
3. Bootstrapping may be the key to survival, but not to growth. Prove your model. Then take the investment. You’ll no doubt get a better valuation and above all, keep it real: THE BILLION-DOLLAR CLUB: 12 Startups With Skyrocketing Valuations. Do they deserve it? Some do, no doubt and again, time will tell: http://read.bi/pJomCl
4. The barriers to entry  for doing a startup are down. Lean startup, faster/first to market, fine, use whatever buzzwords you’d like, but remember: the rules of economics are still immutable – and far from virtual. If you’re living on – and depending on – borrowed money, unless you’re one of those rarities that comes along that is too big to fail, thank you, twitter, but the twitters of the world are the exception than the rule, so don’t bank on it – literally, or besides living on borrowed money, you may be living on borrowed time. Well, your startup, anyway
5. If at first you don’t succeed – you might be talking to the wrong people. Expand your circle of acquaintances and business contacts. Here’s that word again: NETWORK!
6. If it ain’t fixed, don’t break it. Meaning, again, build a real business, not something based on what we personally like to call grouponomics, which is the concept that the SEC will avert its eyes, the investors will help you to cash out and to hell with the rest. Don’t leave the gate with something half-baked. It detracts from us all and leads to a buh-buh-buh – don’t make me say it. Yes, we are aware that we currently have a bad example at the top of the food chain. Don’t think Congress: think Progress. Read More...

Good morning, All,

First, a very happy 2012 to you and our next SOS+EW+ ER ROOTT breakfast is next week – January 10^th, just for the record, and we do limit the number of attendees, so do sign up early. $25 includes breakfast and it’s $30 at the door. To RSVP: http://roottbreakfast3.eventbrite.com/

We’re not big on New Year’s predictions, but our industry seems to like to publish them, ad nauseam, and we’re limiting ours to just one:  Marc Andreessen: Predictions for 2012 (and beyond) Andreessen’s view of the world boils down to software. From where he stands, as the guy who co-founded Netscape Communications and now co-runs the powerful Silicon Valley venture firm Andreessen Horowitz, no industry is safe from software. Or, as Andreessen put it in a much-discussed piece he wrote for The Wall Street Journal, “Software is eating the world.” For his predictions:http://cnet.co/uI4s8r Read More...

Good morning, All,

First, our next SOS+EW+ ER ROOTT breakfast is January 10^th, just for the record, and we do limit the number of attendees, so do sign up early. $25 includes breakfast and it’s $30 at the door. To RSVP: http://roottbreakfast3.eventbrite.com/

The internet is creating a star factor in our sector and fine, when it’s deserved, but there is an element out there who are becoming Media Stars by either jumping on an issue du jour but at the end of the day, seem little more than self-serving, or who are the recipients of Lucky Sperm. Having Fred Wilson blog about you helps as does having Business Insider refer to you as a ‘scenester.’ (Star-Studded Party Photos From The Fabulous Manhattan Home Of The Huffington Post Co-Founder: http://read.bi/uaioZH. By request, the raisecache video: http://raisecache.com/video/) In case you don’t know who she is, a couple of years back, Rachel Sklar decided it was time to change the ratio and “promote visibility, access and opportunity for women in tech”. She has mostly succeeded in promoting visibility, access and opportunity for… Rachel Sklar, who quickly became a Media Star. A scenester she is: you’ll often find her at events usually hanging with…the guys.No one expected her to single-handedly change the ratio, but from the feedback we get from women who meet up with her at events, she might at least consider changing the attitude. Just a thought. And when did BI decide to become the Vanity Fair of the tech press? Read More...

Good morning, All,

It’s the holidays, and one of our members turned us on to some free resources for entrepreneurs at our last SOS+EW+ ER ROOTT breakfast. Our next one is January 10^th, just for the record, and we do limit the number of attendees, so do sign up early. And who can turn down coffee, tea and – free. Advice, that is. $25 includes breakfast and it’s $30 at the door. To RSVP: http://roottbreakfast3.eventbrite.com/

The shot heard round the twitterverse. Last week, Twitter took aim at Facebook and Google+. (Twitter Just Fired A Cannonball At Facebook And Google+: http://read.bi/tYpnCB). Facebook may have 800+ million members, but Twitter wants all 7 billion on the planet. Heads up, Twitter and note to self: if you’re going to make changes, make sure it’s at least somewhat seamless/easy for your users to take on the world with you, but nooo and of course there was a backlash. Especially from iPhone users, which was good news for third party developers. Tapbots responded by putting Tweetbot, normally $2.99, on sale for a limited time. For your .99 download: http://bit.ly/kJnTTi Think Twitter will be making another acquisition soon, and just for fun, Five Things You Didn’t Know About Twitter: http://read.bi/uv4bMq. And one they missed: Library of Congress to collect Twitter data: http://bit.ly/tWP2i4 For a guide to what’s what with the new, new twitter: The New, New Twitter and What It Means to You and Your Business. Leave it to Brian Solis to explain it all for you: http://bit.ly/vl6Xr0 Onward and forward. Read More...

Good morning, All,

We’ve got a lot of new members and just to review, here’s how to post to the list: Easy: Go to https://startuponestop.com/ and follow the ‘Post to the list’ link. You’re free to post what you need, what you can offer, or even if you just have a or two question. And welcome!

It’s true that as of January 1st, you won’t be able to buy 100 watt incandescent light bulbs in the US, so stock up now and as a corollary to last week’s Networking 101, a lot of you are out there networking (we know; we’ve been meeting you!), and hopefully making connections. Here are a few more tips for you: Read More...

Good morning, All,

Our next EW+SOS+ER breakfast will be December 6th, and it’s the Midtown Edition, centrally located at Wichcraft at 555 Fifth Avenue. Yes, we do keep them intime so that everyone is able to participate and tell us what you’re up to – and what you need. RSVP here: http://roottbreakfast2.eventbrite.com/

It’s December. Holiday music is in the air and early stage investors are pretty much in the wind. Or will be soon enough. Many of them will be at the many parties/events that are happening around the world this time of year. To help you make the most of it: The Basic Rules of Networking – in no particular order. Read More...

Good morning, All,

Our next EW+SOS+ER breakfast will be December 6th, centrally located at Wichcraft at 555 Fifth Avenue. We keep it to a small group; everyone introduces him or herself, and everyone has the opportunity to talk about what they’re doing – and what they need to get to the next level. Hope to see you there!  RSVP here: http://roottbreakfast2.eventbrite.com/

Cross one off the bucket list: last week we met one of our personal favorites – Mark Suster – who spoke at the Vator VentureShift conference and stated unequivocally that the current tech bubble will burst next year – 2013 at the latest. His recommendation: take as much money as you can – NOW – and since there are a number of people out there who are suddenly ‘investors,’ he also warned about inexperience/newly minted investors, and we’d like to share an excellent blog post Mark Birch on this very subject not too long ago: (The Trouble with Non-Investor Investors. “You can file this under investors to avoid,” states Birch, and to read on: http://bit.ly/vZRaFH). Suster also said that there’s no such thing as superangels, and mentioned the barbell, which, if you haven’t been paying attention, is the industry term du jour. ‘Barbell’ refers to that investment no man’s land between early stage and serious VC money, where the investment landscape almost literally flatlines. It’s also the place that separates out the serious companies: where you literally have to make it on your own petard or close up shop. You’d better have something no one can live without – and are willing to pay for – or has made a dramatic change in the landscape, and no one can live without, like twitter. Just something to think about. That said, the angels are out there, but spend your money and build your product wisely and yes, Virginia, you do need a business model. Read More...

Good morning, All,

Long one this week, but next week’s a holiday, and we’ll keep that one short and pithy. First, our rooftop event is tonight and we’ve got some new investors for you to meet so register now and don’t miss out: http://terraceparty5-auto.eventbrite.com/. NOTE: the address is 121 West 45th Street, 3rd Floor. Our next EW+SOS+ER breakfast will be December 6th, centrally located at Wichcraft at 555 Fifth Avenue, RSVP here: http://roottbreakfast2.eventbrite.com/

We ran into an old friend not too long ago – a former VC who decided to return to his entrepreneurial roots. We noted that funding shouldn’t be a problem for him, given his success record and the fact that he knows a number of prominent VCs personally. “That’s the last money I’d take,” he noted. “Too expensive.” Entrepreneurs are a scrappy lot and there’s always another way, and lo and behold, look what we found, from BI: The Way Companies Are Getting Financed Is Completely Changing (http://read.bi/u7bIve). The article goes into the alternate means to funding – crowdfunding, accelerators, superangels, et al, and good timing, but wait, there’s more! It mentions a few from each category, but for more complete information worldwide, knock yourselves out: Read More...

Good morning, All,

First, our thanks to those who came to our first EW+SOS+ER breakfast last week. We really enjoyed meeting you in a more intime setting for a change and we promise the next one is more geographically desirable/accessible to public transportation – Wichcraft at 555 Fifth Avenue, on December 6. RSVP here: http://roottbreakfast2.eventbrite.com/ and looking forward to seeing you there! In the meantime, our next rooftop event is coming up November 15^th, and make sure to register now: http://terraceparty5-auto.eventbrite.com/ And note: in keeping with the theme of the newsletter – we’ve got some new investors for you to meet, and this time, we’ll be conveniently located in midtown!

We’re getting to that time of year again: holiday season, when people start to take off for points unknown, hit the party re: networking’circuit (as if we’re not out networking every night, anyway – or potentially can be) – and the flow of investment money into startups start to slow down. But tech never rests, and it’s not over yet. For inspiration this week: the angels are out there, and here’s how to find them, no matter where in the world you happen to be: Read More...

Good morning, All,

Mark your calendars: November 15^th, the early bird rate is available, so make sure to register now: http://terraceparty5-auto.eventbrite.com/ We’ll have a new crew of investors on hand, and we’ve moved the venue to Hubitat, a new space that’s opening for entrepreneurs on 26^th Street, and it features excellent amenities, associated corporate services – and it’s backed by a team of mentors, including serial entrepreneurs and angel investors to help members where and when they need it. It seems to us a cross between an accelerator and an incubator/shared office space, with mentors in residence. The best of all worlds, and Neil Anderson, who has organized the space and who is himself an angel investor, will be on hand to tell you all about it – and to talk to early stage startups, so be there, and our thanks to Neil and Hubitat for hosting.

We’re also starting our EW+SOS+ER breakfast series – Rock Out For Breakfast – this Thursday, and here’s the drill: $25 includes breakfast at Wichcraft, and your chance to have intime conversations with fellow entrepreneurs, possible mentors, and angel and VC investors.  ONLY 30 TIX available for each breakfast, which starts at 8.30 am; personal introductions around the table at 9; and networking until 10. A great way to start the day and it kicks off this Thursday, November 3^rd. You don’t really have to rock. Just be there, and we’ll be kicking off a lunch series, too, for those of you who like to sleep in. To register: http://breakfastevent1.eventbrite.com/ Read More...