The document provides advice for pacing a startup and using venture capital funding effectively. It recommends (1) maximizing productivity early on to gain an advantage over competitors, (2) mapping where you want to be financially when funding runs out to capture value, and (3) figuring out milestones and adapting along the way to reach financial sustainability.

1. Pacing Your StartupDayna Graysondayna@northbridge.com

2. I Have $, Now What?Venture capital is not an alternative to bootstrapping. . . Venture Capital provides entrepreneurs time and money to take risks for big rewards.So, use the money to take measured risks.

3. Step 1: Maximize ProductivitySpeed is your only advantage at the early stages.Otherwise, many others (larger competitors, etc.) could do what you’re doing.

4. Step 2: Map Where you Want to Be when the Money Runs OutYes, the rock will just roll down the other sideYou will have to keep pushing it back up, but it won’t always be as hard . . . These are times to capture the value of what you’ve built.

5. Step 3: Figure Out What You Need To Get ThereCreate times for honest check points.And adapt along the way.

6. Step 4: Stay FocusedUse your blinders for what they are intended: minimize distractions

7. TimelineYou CAN raise money after any one of these iterations but figure out when you SHOULD

8. Top Ten Don’tsDon’t underestimate the time it takes to hire. Always be interviewingDon’t settle on hiring because you need a warm body in the roomDon’t hire your friends because you like themDon’t give away equity for ideas with no executionDon’t miss a conference where 10 leads could beDon’t commiserate Don’t overinvest in infrastructure Don’t spend half of your money on an experimentDon’t make excuses. Be honest with yourselfDon’t take everyone’s advice

9. Top Ten DosDo learn to recognize A+ players (A+ = experience OR potential)Do hire athletes (Doers) Do hire people who share your passionDo find advisors Do experiment and listen to resultsDo value the low noise to signal ratio in the early stagesDo pitch your business to anyone who will listenDo describe your business to your mother. If she doesn’t get it, refine itDo hire previously successful people who will show resultsDo trust pattern recognition. Your business is new. Starting a business is not

10. The End