Here is a compilation of the top 5 Startup Tips articles, which I considered my November month favorite:
(1) How much should you pay yourself?
Christoph Janz’s article in “Point Nine Land,” titled “How much should you pay yourself? Introducing the Founder Salary Calculator 2023,” offers an insightful update to his previous model on founder compensation.
Having partnered with Figures, a leading compensation benchmarking platform in Europe, Janz enriches his model with data from over 1000 startups and tech companies. Using 728 data points, this updated calculator provides a nuanced view of founder salaries across stages and locations in Europe, factoring in aspects like cost of living and market costs.
Additionally, it addresses the gender pay gap, albeit with limited data for female founders. The article stands out for its practical approach and data-driven insights, making it a valuable resource for founders seeking guidance on compensation.
(2) Apparently, Most Entrepreneurs Don’t Understand the Real Purpose of Venture Capital
Aaron Dinin’s article in “The Startup,” titled “Apparently, Most Entrepreneurs Don’t Understand the Real Purpose of Venture Capital,” offers a profound insight into entrepreneurs’ misconceptions about fundraising.
Dinin, through a conversation with a founder, illustrates the critical difference between linear and exponential growth, emphasizing that venture capitalists seek exponential (‘hockey stick’) growth due to its higher returns on investment.
He elucidates that venture capital is not a one-size-fits-all solution and should be sought only when necessary. The article is a stark reminder that venture capital is a means to an end, not the end itself, and should be approached with a clear understanding of its purpose and implications.
(3) What I Look for in Founders and Startups as an Angel Investor
Paul Zhao’s article in “The Startup,” titled “What I Look for in Founders and Startups as an Angel Investor,” provides a rich, insightful look into the mind of an experienced investor.
Drawing from his own entrepreneurial journey and extensive experience in evaluating startups, Zhao emphasizes the importance of clear, concise communication from founders, the necessity of defining what a startup will not do, the value of showing the practical movement of ideas, and the importance of learning from what didn’t work.
His approach is pragmatic and deeply rooted in the real-world demands of startup success. Zhao’s perspective is precious for founders in the B2B space, offering them a detailed guide on how to impress potential investors and secure funding.
His advice underscores the importance of strategic planning, efficient communication, and the ability to adapt based on feedback, making it a must-read for any aspiring entrepreneur.
(4) The Real Reason Why Starting a Company is Harder Than You Think
Aaron Dinin’s “Entrepreneur’s Handbook” article titled “The Real Reason Why Starting a Company is Harder Than You Think” delves into the complexities and mental barriers budding entrepreneurs face. Through a conversation with a young founder, Dinin explores the dichotomy of naivety in entrepreneurship — how being too naive can propel and hinder a startup’s journey.
He argues that naivety can be a driving force, allowing entrepreneurs to pursue ventures that more experienced individuals might overlook. However, this naivety diminishes with experience, leading to more calculated decisions in future ventures.
Dinin’s perspective offers a nuanced understanding of the entrepreneurial mindset, emphasizing the importance of embracing naivety and recognizing its eventual decline. This article is insightful for aspiring entrepreneurs, highlighting the psychological challenges of starting a company and the evolution of entrepreneurial thinking.
(5) The pitch deck template is dead. Introducing — The Pitch Cycle.
In “The Pitch Cycle,” Moti Elkaim challenges the conventional wisdom of using a standard pitch deck template for startups seeking investment. Elkaim argues that a more dynamic approach is necessary to capture and maintain investor interest in a market where assets are scarcer.
He introduces the four-part pitch cycle, emphasizing the importance of storytelling and creating a personal connection with investors. This cycle includes capturing the imagination, raising the opportunity, driving the business argument, and tactfully asking for investment.
Elkaim’s approach prioritizes engaging the investor’s attention and interest over traditional presentation methods. His insights are particularly relevant in today’s competitive and uncertain investment landscape, making this a valuable read for entrepreneurs looking to stand out in their fundraising efforts.
Dr. Mazlan Abbas 