Startup finance and organization

Several years old but still relevant, via Guy Kawasaki, Glenn Kelman on startup costs at Redfin:

When first putting together our financial model, we looked online to calibrate spending assumptions. So many people have blown venture capital, we thought, there must be a manual somewhere on how to do it, at what rate, avoiding which follies. We couldn’t find anything. So we took some wild guesses and figured we’d see how they turned out.

Related, Tom Tunguz on resources and prioritization:

… a company has one goal but leverages 4 teams to achieve that goal: engineering, marketing, product and sales.  In well run companies, these teams should exert tension on each other. Sales advocates the path to short term revenue growth. Product should advocate the strategy for medium and long term growth. And Engineering should advocate realistic development schedule.

  • Thanks for the quote. Actually, the article is just a few weeks old but I’m glad you like it!

    • mcf

      Was referencing the post about Redfin which is older but I worded it confusingly. Updated!