Archives For financial needs

Seed Money

NadieLabs, a Spanish consultancy firm specialized in entrepreneurship and innovation in business models, interviewed me last month. They asked me about how to get funding for a startup. I tried to capture the main financial possibilities that an entrepreneur have when he launch an innovative company. I also try to give clues about how easy or difficult it is to get each financing option. This is the interview: Continue Reading…

640px-Marco_Polo_traveling

Marco Polo, first entrepreneur who raised venture capital

Marco Polo, the Venetian merchant, who arrived to China in the thirteenth century, was one of the first entrepreneurs who got venture capital. He convinced several wealthy Venetians to finance his commercial expedition to Asia. Marco Polo promised that he would share his profits of this risky venture with them. These funders were a kind of precursors of the current venture capital, which main characteristics I describe below in a simplified form: Continue Reading…

What is Lean Start Up?

17 July, 2013 — 1 Comment
lean startup

Photo by John Fischer on Flickr used under a Creative Commons licence

It is a methodology for the creation of enterprises developed by the entrepreneur and consultant Eric Ries in his book “The Lean Startup” published in 2011. It has been a huge success among entrepreneurs, especially among internet entrepreneurs.

This methodology is based on the idea that a startup is an organization formed to search for a repeatable and scalable business model under conditions of extreme uncertainty.

The main point is to build a minimum viable product with basic features that are supposed interest to customers and launch it quickly to test if the hypotheses are true or not. By this way entrepreneur can learn a lot about the business, his products and his customers. Then, the entrepreneur decides whether to persevere or “pivot”, correcting some of the hypotheses.

Foto-Pello-Gamez

I interviewed Pello Gamez, one of three Geoactio’s entrepreneurs, who I met when they first launched their company. I negotiated Start Up Capital Navarra’s investment in their company. Since then, I have been witness to the positives changes in Geoactio, thanks to these entrepreneurs’ efforts, sacrifices and capacity to adapt to the market. Geoactio’s story is a good example of the difficulties which a start-up faces its first years and how its entrepreneurs overcame them.

Startup: GEOACTIO, Pamplona, Navarra, Spain.

Activity: Software and mobile applications development. Smart city and mobility projects. Smart bluetooth. Continue Reading…

The “time to market” or time to get into your market is a very important concept that affects startups. It has to do with the time it takes from product conception until the first sales are achieved.

Many startup entrepreneurs expect to sell in the first few days, but it usually will take months, in some cases many months, until the first sales are achieved. The reason is that many startups are created without having a product ready for sale. They are created just to finish the products and to sell them. When you launch a new product or service it requires time to make it known to customers and sell it. Continue Reading…

Weareknitters web3

Photo: Alberto Bravo and Pepita Marin, We Are Knitters founders.

Startup: WE ARE KNITTERS, Madrid. www.weareknitters.com

Activity: We sell kits online to knit your own clothes, including 100% wool or cotton balls from Peru, wooden knitting needles and pattern. All in one kit recyclable supported with video tutorials for beginners. We operate in Spain, Germany and the UK. Continue Reading…

Photo of zizzybaloobah on Flickr

In business and investment the expression “cash is king” is widely used. This idea is the highest priority in terms of startup finance. A startup can assume that the first year will not bring benefits, provided it has clear when they will start. But what makes a high percentage of startups disappear shortly after its creation, is the red or running out of cash. Cash is one of the three legs of the financial plan, along with the income statement and balance sheet. This is most important in the case of startups. So, “cash is king”. Continue Reading…