The Startup Velocity Question: What Hinders Acceleration in VC Funded Companies?

I have been running 1Mby1M since 2010. I find myself saying to entrepreneurs ad nauseam that VCs want to invest in startups that can go from zero to $100 million in revenue in 5 to 7 years.

Startups that do not have what it takes to achieve velocity should not be venture funded.

Experienced VCs, over time, have developed heuristics to gauge what constitutes a high growth venture investment thesis. 

1Mby1M Udemy Courses with Sramana Mitra: Bootstrapping

Over the course of two years, we have released over 70 courses on Udemy with the aim to democratize entrepreneurship education at scale globally. This series of posts aims to help you find the one you need easily and provide you with discount coupons.

Bootstrapping to $100 Million Using Services from The Netherlands: Pierre and Fred Guelen, Planon Software (Part 1)

If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. 

Pierre and Fred Guelen have bootstrapped a very significant company from The Netherlands using the bootstrapping using services principle. Read on and learn how.

Sramana Mitra: We’re going to start at the very beginning of your personal journeys. One of you please start by telling us where you’re from, where you were born, and in what kind of background, and then we’ll do the same thing with the other person.

Pierre Guelen: I’m the CEO of Planon group. Fred is my brother. We were born in The Netherlands in a small town near the German border. We were raised in an entrepreneurial family. My father owned a large building company. He was already the fourth generation in that building company.

Sramana Mitra: What did you do for education? >>>

Featured Videos

Bootstrapping to $15 Million: David Braun, CEO of TemplateMonster (Part 1)

When you run a business over a long period of time, technology changes create massive challenges. David has navigated TemplateMonster in  several of these.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of circumstances?

David Braun: I’m from Georgia – the former USSR country. I’ve lived there until I turned 11. In 1992, Russia initiated the war in Georgia. We were a very wealthy family. We had to drop everything we had – house, apartments, cars, and so on. We just moved in one day with just the clothes we were wearing. I still have my shorts in which I had to run away. That’s all we had to start.

My father was a teacher. He was teaching math. My mother was a cosmetic specialist. We were moving from one place to another, wherever friends offered free places to live. It all ended up in a small city in Ukraine where I graduated from school and finished university. >>>

Building an Artificial Intelligence Software Company from Dallas: Dave Copps, CEO of Brainspace (Part 1)

Artificial Intelligence startups are very hot these days. Read how Dave Copps has built Brainspace from Dallas.

Sramana Mitra: Let’s start with the very beginning of your story. Where are you from? Where were you born, raised, and in what kind of background?

Dave Copps: I was born and raised in Dallas, Texas. My dad was an eye surgeon. My parents had moved down from Wisconsin. They were snow birds, as they called themselves. My mom was a community leader. My dad was very smart. He graduated from college at 17. His dad had the same background. He went to the Navy while his friends were graduating.

My mom funded many fundraising efforts in Dallas. From an early stage, I learned a lot about the importance of education, culture, and giving back. I left for college to go to Westminster College in Missouri and came back to Dallas and finished at the University of North Texas. I’ve been in Dallas ever since. I always thought I’d be off in Europe somewhere. Dallas is a great city. It’s a great place to start a business. >>>

Women ARE Raising Venture Capital: Kerry Cooper, CEO of ChooseEnergy (Part 1)

Kerry was brought into ChooseEnergy by Kleiner Perkins along with the seed funding. Since then, she has raised $25 million and is running a traditional venture-funded company. This interview includes a discussion on the controversial subject of women in technology and venture capital.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?

Kerry Cooper: I was born and raised in New Mexico. I was born in Santa Fe and raised, mostly, in Albuquerque. Both my parents are veterinarians. My mom was one of the first women to go to veterinary school. However, I grew up in a lower middle-class environment. We didn’t have much money. I started working when I was eight. I started babysitting when I was 12. I got my first job at Baskin-Robbins when I was 15. I think I’ve had a thousand jobs since then. That was the very beginning. I graduated from high school in Albuquerque. >>>

Resilient Entrepreneurship: Inspire CEO Brian Loew (Part 1)

Brian and his team went five years with little or no revenue. Revenues started flowing in year six, and now, in the 10th year, the company is doing over $5 million in revenue, growing 80% y-o-y.

Read Inspire’s journey of resilience and persistence.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?

Brian Loew: I grew up in Northern Virginia in the suburbs of Washington DC. Both my parents are teachers. My father is a university professor. My mother was an elementary school teacher and, later, a computer programmer. I grew up as a sort of normal suburban kid. I went to the Thomas Jefferson High School for Science and Technology, which was a big influence. Then I went on to George Washington University and double majored in Physics and Economics. I was always the entrepreneurial kid. >>>

Managing Multiple Pivots While Scaling to $50 Million: MotionPoint CEO Will Fleming (Part 1)

Will and his partner started with a somewhat flawed business idea, but has successfully built up to a $50M company.

Along the way, pivots had to happen, and are still happening. Interesting study in customer-driven strategy.

Sramana Mitra: Let’s start at the very beginning of your journey. Where were you born, raised, and in what kind of circumstances?

Will Fleming: I was born in New York City and moved around a bit as a child. The first lengthy stop was my grade school years. That was probably, in retrospect, the beginning of my entrepreneurial journey. Although of course, I couldn’t know it at that time. One of my favourite entrepreneurial memories of the grade school years was when I was 9 years old. There was a magazine I got called Boy’s Life. I found an advertisement at the back of the magazine and I wrote to them to receive a whole bunch of flower seeds. >>>

Bootstrapping a Niche E-Commerce Venture: Elite Fixtures CEO Steven Annese (Part 1)

I’ve always been bullish about niche e-commerce. Here’s yet another story of an entrepreneur who has successfully bootstrapped a company in high-end light fixtures.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?

Steven Annese: I’m a child of an Italian immigrant. I was born in New Jersey. It was in the 70s when most of the Italians migrated.

Sramana Mitra: What about college?

Steven Annese: University was interesting. I wanted to migrate somewhere out west or south. Unfortunately, since my parents were immigrant, they didn’t want me to leave the house. So I had to go to school locally. I attended St. Peters University in Jersey City. >>>

Bootstrapping Using Services: Bay Dynamics Co-Founders Feris Rifai and Ryan Stolte (Part 1)

Feris and Ryan wanted to work together on a new venture. They first built a services company, then introduced an OEM product, and eventually bootstrapped a product under their own brand. The company has recently raised its first venture money after many years of being in business as a profitable, growing entity.

Sramana Mitra: One of you should probably get started. I want to go back to the very beginning of your journey, and learn about your pre-Bay Dynamics story. Where were you born, raised and, in what kind of background?

Feris Rifai: I was born in Beirut, Lebanon. That’s where I was raised till I was 18 years old. I then came to the United States to go to college. I went to school at Indiana University. It was a great experience for me. Throughout my journey when I was much younger in Lebanon, it was a bit of a difficult upbringing because we couldn’t find a way to get safety to be a part of our lives. I think it’s taught me a lot. It has helped me be, believe it or not, very optimistic. >>>

Buying Control Back from VCs: Jason Robbins, CEO of ePromos (Part 1)

Jason raised both angel round and a VC round early on, but eventually, the company turned out to be a good, solid, profitable business, but not the kind of rocket VCs like to fund. Read how he negotiated with them to gain control of the venture.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were your born, raised, and in what kind of background?

Jason Robbins: I was born in Brooklyn and did most of my studies at Syracuse in the New York area. I worked at Manhattan. I went to Columbia for my MBA. I’ve been around the country and the world a lot but most of my stuff has been in the New York area. Most recently, I picked up and moved from New York to Florida. I have been living in Florida with my entire family since August. >>>

Innovating in Fintech: Jason Hogg, CEO of Lending.com (Part 1)

FinTech is hot these days. Jason has particular expertise in the segment, and he discusses his multiple ventures.

Sramana Mitra: Let’s go to the beginning of your personal story. Where were your born, raised, and in what kind of background?

Jason Hogg: I’m from New York originally and grew up just outside the city. My dad was actually the CEO of MasterCard, which was located in the city at that time. Before that, he had been with American Express and ran their international business. I ended up spending my early youth in England as well. I was born in the States, moved over to England for a few years, and then came back.

Sramana Mitra: After high school, what did you do in terms of further education? >>>