4min chapter

This Week in Startups cover image

ANGEL: Brad Feld on investing through 3 economic cycles, CEO/investor dynamics, and more | E1660

This Week in Startups

CHAPTER

The Cash Flow Dynamics of a Hardware Business

For gross margin, your only solution is raised prices. How you do that in this environment is very straightforward but very hard for people to get their minds around. Michael Dell's business and the brilliance of Michael Dell early on, absolute brilliance is he created the first negative working capital computer model. So somebody would buy it and they'd assemble it and ship it. And that allowed them to grow with very little investment because they were essentially using the customer order dollars as the starting point.

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