DonDodge

I guess you didn't read this one where I rip a Microsoft lawyer for dumping on Google? http://dondodge.typepad.com/the_next_big_thing/2007/03/micro...

I have been in the software business for 25 years and been on the management teams of 5 startups. I have been at Microsoft less than 3 years and haven't drank the Kool-Aid. However, I don't buy the Microsoft is evil argument either.

I rarely write about Microsoft. In fact I write about Google and lots of startups about 80% of the time. That said, if you want to disagree with my point of view anytime...that is fine. It is a free country.

Don

Paul, I agree that this is the definition of Google at 6 months, or any startup for that matter. This was an attempt at snarky humor.

My larger point is that advertising is one model for new startups...but not the only model. Advertising is effective when you have a large, targeted audience, with a willingness to buy/explore ads. Some audiences are too small, or so diverse and random that ads will not work.

There are other revenue models that will work.

Don

That might be because the others did a cut and paste from my blog. I know Mike Arrington did...I told him he could. He felt bad because he couldn't make it to the demo day after earlier confirming he would be there.

Y Combinator had more companies (19) and more variety. I wish I could have written more about specific Y Combinator companies, but we were asked by Paul not to write about them unless they were already launched. Many of them were further along than the TechStars companies.

The good news is I saw several good teams at both Y Combinator and TechStars. Some significant winners will emerge.

Entrepreneurs face some pretty tough questions at a very early stage. Should I take Angel or VC money? How much money should I raise? How much equity should I give up? How much equity should I grant to early employees?

The math equation is correct, but the likely outcomes are nearly impossible to estimate. I have been on the management team of 5 startups and advised many others. There are some "norms" and guidelines for how much to raise at each stage, how much equity to give up, and even how much stock to grant employees as you grow the company.

I wrote an in depth blog on these questions, too long to detail here, but Paul is on the right track. For more details see How much Equity for Investors and Employees?

http://dondodge.typepad.com/the_next_big_thing/2007/08/how-m...