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HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

In the early stages, most companies focus on R&D, leading to zero revenue and high expenses, which is typical for startups.

Video

HI

Harvard i-lab | Startup Secrets: Business Model

@ Harvard Innovation Labs

Harvard i-lab | Startup Secrets: Business Model

02/02/14

Related Takeaways

BF

Brad Flora

02/13/25

@ Y Combinator

In the earliest stages, startups should avoid spending money unless absolutely necessary, focusing only on essential expenses like a laptop and a place to live.

HI

Harvard Innovation Labs Cast

06/12/13

@ Harvard Innovation Labs

When starting a business, 100% of your initial expenses are typically in engineering, focusing on product development, but as you grow, expenses shift towards proving market acceptance.

KN

Kirsty Nathoo

08/22/19

@ Y Combinator

Startups often underestimate their expenses, especially in the early days when founders may undervalue their own time and efforts.

YC

Y Combinator Cast

02/13/25

@ Y Combinator

The primary goal for early-stage startups should be to find product-market fit, and spending should be minimized until that is achieved.

KA

Kofi Ampadu

05/06/25

@ a16z

It's rare for a company to be profitable from day one; outside funding plays a big role in sustaining a company while it grows.

KN

Kirsty Nathoo

08/22/19

@ Y Combinator

In the early stages, it's important to be cautious with spending and have a plan to reach profitability, even if you're reinvesting revenue into growth.

GR

Geoff Ralston

12/15/20

@ Y Combinator

Startups should prioritize generating revenue as early as possible to ensure they can survive in uncertain conditions, which is a key aspect of being 'default alive'.

EM

Eric Migicovsky

10/13/18

@ Y Combinator

After raising money, many startups forget how to be scrappy and creative, which is often essential for success in the early stages.

HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

As companies mature, they should aim for a gross margin of at least 80%, with R&D expenses dropping significantly as they scale.