Your B2B cost strategy must match your B2B revenue model, or your business model won’t click. Let me explain. I wrote in the past about B2B revenue models (here) and the differences between the perpetual licensing and subscription pricing models. The summary is this. If you charge $1 for your software, a licensing model lets you get that
Category: Entrepreneurship
No Free Lunch with Venture Debt
I sometimes hear entrepreneurs extol venture debt because it is “free money.” Low interest, non-dilutive capital. In my experience, there’s no free lunch in the capital markets. That’s certainly the case with venture debt. The interest is low for a reason. Venture debt is simply a loan. There are interest and warrants attached. There are
A Snowy New Year’s Eve
We are skiing up in Vermont for a few days and are pretty far north, near Canada. Some shots above. As a VC, you almost never go offline. So, I check email a few times each day and had a call with one of our companies. But, there are many people who almost never
Rob Kornblum on ‘Give Your Kids the Gift of Entrepreneurship’
I’m always on the look out for helpful advice on parenting. So, when Rob Kornblum told me he was writing about the topic, I was really excited. He is an Internet entrepreneur and a former venture capitalist. Rob has a blog called StartLaunchGrow and is about to publish a book, “It’s Never Too Late,” which is about
When Your VC Financing Is a ‘Busted Auction’
Auctions are curious things. Moreover, the mere perception of being in an auction is more than enough to inject fear into a discussion. I’m writing this because of two things. First, I connected recently with another VC, who commented that his firm was about to invest in its first [insert here name of famous incubator] company.
Why Your Revenue Plan Matters
You revenue plan really matters. It means you can establish independence from your VCs. I write this because one of our very young portfolio companies is about to achieve a major milestone: it will beat its revenue plan for the year. The numbers are small, but to our group at Kepha, that is a major