Eric Paley

The Author

Eric Paley

CEO & Co-Founder at @DrifttHQ. Five-time Entrepreneur

The Probable, The Possible, The Delusional

In 1961, President John F. Kennedy told a joint session of Congress that before the end of the decade, America would put a man on the moon. This was not an empty political promise to get elected, but a commitment of a sitting president boldly exposing himself to political...

Eric Paley 02/13/2016

When Burn Rate Outweighs Enthusiasm

Many business critics of Uber contend that the company is spending “unsustainably.” Despite that nearly all venture-backed startups burn capital unsustainably, Uber’s level of spending is viewed as particularly problematic among its naysayers. Negative press notwithstanding...

Eric Paley 01/13/2016

The Platform Paradox

I often hear VCs say that they don’t back products, they back platforms. I find that logic backwards and in many ways dangerous for founders. Platforms can provide a durable competitive advantage, and it’s easy to understand why startups would want to create one. But great...

Eric Paley 11/28/2015

Wasting Time With The Joneses

Starting a company is like attempting to bend the world to your will. There are obstacles at every turn, and it’s never easy. Fundraising is one of those huge obstructions. Not only is the process of finding the true believers akin to finding the proverbial needle in the...

Eric Paley 07/30/2015

Running Out Of Money Isn’t A Milestone

Nearly all startups use the same methodology to figure out when to raise their next round of capital. The founder projects the planned burn rate and estimates the day they will run out of cash. Then they subtract a margin for fundraising approximately four months from the...

Eric Paley 06/24/2015

The Fine Line Between Success And Bankruptcy

When seed capital hits the books, the outlook of every startup is one of unbridled optimism. Founders, team members and investors are inspired by a singular vision and believe it can materialize into a world-changing company. If things go right and the product gets amazing...

Eric Paley 05/25/2015

How To Sell Your Company Without A Buyer

Conventional wisdom is that startups are bought, not sold. The logic follows that no matter how much an entrepreneur wants to sell a company, there needs to be an eager buyer and no amount of seller desire can manufacture one. Some people interpret this wisdom to mean that...

Eric Paley 04/11/2015

After Funding, Watch Burn Rates And Beware The Tyranny Of Incrementalism

After struggling for months or years without any financing, most startup founders relish the opportunity to finally have the seed capital to accelerate the plan. The first term sheet often feels like such a big accomplishment, not because the founder confuses the funding...

Eric Paley 02/25/2015

The Power of Founder Role Models

Taking the leap to being an entrepreneur is really scary. Every founder that I know points to role models that made that leap possible. Some of those role models are legends like Steve Jobs or Alfred Sloan. While legends inspire us at a high level, their path also seems...

Eric Paley 05/01/2014

The Games Startups Play

Every startup plays two complementary games–the air game and the ground game. The air game is always more romantic. It is the emotional narrative of how your startup revolutionizes a market. It’s the aspirational hope that the company could become one of the...

Eric Paley 04/04/2014