entrepreneurship

What Square's rise means for the startup ecosystem

Square is different than any other startup that has come before it, and its growing influence and size will inevitably lead to a change in the way entrepreneurs run their companies and venture capitalists invest.

There's no doubt that Square is on the rise, but it is set to accelerate its growth, thanks to a strategic investment from Starbucks that places Square's technology in front of millions of consumers. And thanks to Starbucks, Square's revenue and valuation are set to soar.

Perhaps this is why more pundits are calling Square "Silicon Valley's next great company,&… Read more

Technology vs. traction: The two types of startups

One of the most important qualities investors look for in a startup is defensibility. Can a startup's product quickly be copied? Does it have technology or patents no company has had before? Are users flocking to its product like locusts?

At the seed stage, when startups are in their infancy, I believe there are two type of startups. The first is the technology startup -- it's a company that is defensible because it has built unique technology nobody else has. The second type of start is the traction startup -- unlike technology startups, the traction startup is defensible … Read more

In the social media era, even VCs need personal brands

Nobody wants to admit it, but building a personal brand is essential if you want to thrive in a business world dominated by social media. This is especially true for entrepreneurs and even venture capitalists who have only recently stepped out from the shadows and into the spotlight.

I became intrigued by the rising role of personal branding in the VC world by a New York Times article last week that discussed how more VC firms are hiring PR specialists to help brand their firms.

Here's a quick excerpt from that article:

"Now, Sand Hill Road in Silicon … Read more

Five ways to screw up your startup's pitch

Pitching your startup idea to investors, journalists, and random people on the street is a rite of passage for all entrepreneurs. You have to convince hundreds (if not millions) of people that you're building something worthwhile and that they should get on board.

Most pitches fall flat though (the best VCs invest in perhaps 1 percent of the startups that pitch them), and it's often because of simple problems that could've been avoided. Nervous entrepreneurs stray from their story, and arrogant entrepreneurs demand unreasonable valuations and then get laughed out of the room by top-tier angels.

Here … Read more

NYC Generation Tech aims to turn high schoolers into techies

Despite the lagging economy and slow job growth, the tech sector is booming. And according to some estimates, it's only going to get better. This may be one of the reasons why some politicians and educators are pointing kids in the tech direction.

New York City's Economic Development Corp. and the Network for Teaching Entrepreneurship announced the launch of NYC Generation Tech today. It's an initiative aimed at teaching the city's high school students hands-on tech training while also pairing them with mentors in the biz.

Designed specifically for "students interested in transforming the world … Read more

How to cope with the emotional stress of a startup

Imagine experiencing the pain, sorrow, and misery of a breakup. Now imagine winning the lottery the next week. That's the kind of emotional roller coaster a new startup founder can expect.

"The emotional ups and downs were the biggest surprise for me," a founder of a Y Combinator-funded startup says in one of Paul Graham's essays. (Graham is a co-founder of Y Combinator.) "One day, we'd think of ourselves as the next Google and dream of buying islands; the next, we'd be pondering how to let our loved ones know of our utter … Read more

Seven startup sins to avoid

I've seen thousands of startups fail, but they almost always fail for the same reasons. Most entrepreneurs fall into the same traps over and over again, despite how easy they are to avoid.

At the London Web Summit earlier this week, I told an audience of European entrepreneurs the seven mistakes I believe most often destroy promising startups.

These are my seven startup sins. Avoid these common mistakes at all costs:

1. Losing focus: If you're like the typical entrepreneur, you probably have hundreds of new ideas for your startup. But you must resist the urge to build … Read more

Why business co-founders ought to learn code

In the new Internet economy, code is king. Taking the time to learn the basics of programming will help you succeed in business and entrepreneurship.

A few days ago, an aspiring entrepreneur e-mailed me with a simple question:

"Do you need to be an expert in coding to build a successful startup, or can you employ experts to do the technical work for you?"

This person has demonstrated success as a businessman and a salesman, but he caught the entrepreneurship bug and couldn't shake it. He wanted to start his own company.

I knew what he wanted … Read more

How Uber's car-booking service can succeed in NY

NEW YORK--I had my Uber moment a few Sundays ago, standing on a corner in the hipster enclave of Williamsburg, Brooklyn, with my arms full of houseplants.

It had been raining off and on all afternoon. The subway line that could most reliably take me back to my apartment, following a lavish shopping spree at the borough's most notable gardening emporium, wasn't running because of weekend construction work. My alternative was to take a route that would involve two different subways followed by a 15-minute walk. With the houseplants. Bedford Avenue, Williamsburg's main drag, is a well-populated … Read more