New York-based entrepreneur. I help startups and companies with their online marketing strategy, personal branding and content marketing. Extremely passionate about e-commerce.
Normally, investors want startups to either exit or go public. They're not exactly interested in making some small return before.
They want to make at least 10x the amount they invested, that's why it's worth it for them, even with the risk of losing the capital (and that's what happens to a considerable number of investments they do).
Snapchat is definitely not in the same age and situation than pets.com. Look how long it took Yahoo to be forced to sell... If Twitter doesn't start growing soon, it'll be in a similar situation within 24 months.
If the table turns for Snapchat and does not grow, they would force the CEO to step down within a year, then give the new CEO 2 years to show results. If they don't want to sell, then they would replace the second CEO within 18 months.
Of course, this is pure speculation and considering similar companies in hard situations. You should definitely read THE HARD THING ABOUT HARD THINGS by Ben Horowitz.
Look at your peers and the people involved in the incubator. If networking with them enriches your venture and helps you out, then it's a good idea.
That's the way you decide on an incubator or a coworking space. An acceleration program, though, is a whole different monster.
Something you need to take into consideration (and most people forget) is to understand if the CEO is looking into the right numbers.
That's how investors also vet entrepreneurs. Are they looking to achieve the right goals?
For example, a successful e-commerce site always look to get as close as possible to 50% when it comes to the revenue that comes from returning customers.
Another big problem is the conversion funnel within the store. Is it good enough? Are they paying attention to it? Can they fix it if one of the steps is not working? (meaning: do they have the technical capability of make constant changes to the site?)
I wish you the best of luck!
Depends on the actual content of the ad. If you don't do the ad yourself, the best way to go is to get an agency so they will do the ad creativity and placement.
Needless to say, that's by far the best option. You don't want to end up paying for an expensive ad that is not converting the right amount of people.
What I've done is reach out to agencies that are behind my favorite ads in the medium, and start from there.
I would definitely suggest Silicon Valley Bank. You can take care of most of it remotely, and it's 100% startup friendly. Plus, it's going to be the best bank to have if you ever raise money.
Actually, Stripe is launching a new program where they help startups incorporate, do all the initial paperwork and open up an account for $500. https://stripe.com/atlas
It's not foolish, but it's going to be extremely hard to pull it off. I would consider starting with a beta program so you can have some paid clients to pay for the company's expenses.
After you have some traction, you can raise a seed round.
Definitely a C-Corp in Delaware. You can use the SAFE (Simple Agreement for Future Equity). That's a better version of the convertible note, made by Paul Graham from Y Combinator. You can find it on his personal website.
You should buy the best seller book THE ART OF STARTUP FUNDRAISING by Alejandro Cremades. You can find it on Amazon.
I think it's best if you start by concentrating in only one vertical. You need to find your audience, and you do that by focusing in one category.
Why don't you put "Company" from the beginning? Your branding should also reflect this without losing the sense of community, no matter how big it gets.