There are two recent Forbes articles that are food for thought for entrepreneurs.  "5 Sure Signs A Startup Will Succeed" and "5 Sure Signs That a Good Startup is Going Bad" offer two views of startups.  The first offers five signs for success:

1. Has validated customers
2. Shows a strategic purpose
3. Is cash conservative
4. Operates with transparency
5. Communication

I agree with the above, and would add leadership to the list.  To me, leadership is a combination of installing an exceptional team (starting with management and board), articulating a vision, and then providing an environment that is conducive to success.  Leadership overlaps with the elements of #4 and #5 above.

The second offers five signs that a startup is going bad:

1. A switch to survival mode
2. Big bad investor interference
3. Misunderstood pivots
4. Troubling talk around the water cooler
5. Lack of communication from the top

Links:
5 Sure Signs A Startup Will Succeed:  
http://www.forbes.com/sites/cherylsnappconner/2012/07/12/5-sure-signs-a-startup-firm-will-succeed/ 
5 Sure Signs That a Good Startup is Going Bad:  
http://www.forbes.com/sites/martinzwilling/2012/06/02/5-sure-signs-that-a-good-startup-is-going-bad/ 

The TechCrunch post "Be Concise! - The Top Questions Asked At A Y Combinator Interview" has a list of over 50 questions that entrepreneurs have been asked during the Y Combinator interview process.  As I reviewed the questions, it seemed to me that these questions are also useful to entrepreneurs as they prepare their marketing documents.  For example, one of the questions is "How big an opportunity is there?"  This is something every investor will want to know and all fundraising presentations I have worked on (as an investment banker and lawyer) have had something about the market opportunity (size, growth rate, addressable market, etc.).  If entrepreneurs go through these questions before they prepare their marketing documents, the final product may be more thoughtful and complete.

Here's the link:  http://techcrunch.com/2012/04/27/be-concise-the-top-questions-asked-at-a-y-combinator-interview/ 

Tech entrepreneurs are able to develop ideas much faster and for less money than in years past.  This has led to entrepreneurs changing their company's business model mid-stream when they find the original business model didn't have traction or that feedback suggested moving in a new direction.  This rapid shifting of business models is now known as "pivoting" and in the case of Instagram, paid off very well.  Instagram, founded just a few years ago, was started as a mobile check-in site, but pivoted into the photo-sharing application that was acquired recently by Facebook for $1 billion.

The Wall Street Journal article "'Pivoting' Pays Off for Tech Entrepreneurs" discusses this phenomenon of pivoting, and how venture capitalists are embracing it.  It's an interesting read.  Here's the link:  http://online.wsj.com/article_email/SB10001424052702303592404577364171598999252-lMyQjAxMTAyMDIwNjEyNDYyWj.html 

Pebble is a new "e-paper watch" which is a smart watch (in development) that will download data and apps wirelessly from an iPhone or Android device.  The video on the www.getpebble.com website is pretty informative.  Basically, the Pebble is a customizable watch that runs apps and connects wirelessly to an iPhone or Android device.  In addition to being a customizable watch, the Pebble can do things like act as a running odometer, a gps-enabled bike computer, show text message alerts, caller ID and control smartphone music apps, all available when your phone is with you.

Pebble is a project of a small team of engineers led by Eric Migicovsky, and they previously developed a smart watch for Blackberry called inPulse.  

Pebble has received pledges of nearly $5.5 million (at the time of this writing, and rising fast) from over 37,000 backers on Kickstarter, the funding platform for creative projects.  This is not an equity fundraising - this is funding obtained from people who believe in the project and want to see it succeed.  In general, they get nothing in return other than the satisfaction that they helped the company get off the ground.

Why did Erick Migicovsky go to Kickstarter to fund this project?  Based on several reports, it was because he could not receive backing from venture capitalists, despite having gone through the respected Y-Combinator program and having received backing from some respected angel investors.

To me, what Pebble has done is very impressive, and portends favorably for the new crowdfunding form or equity fundraising that was recently passed into law by the Jumpstart Our Business Startups (JOBS) Act.  Soon sites like Kickstarter will be able to help companies raise equity financing directly from investors - small amounts - but it will enable people enthusiastic about a project to obtain a (very) small equity stake in the company in addition to helping it get off the ground.  This could be big...

Links:

Pebble website:  http://www.getpebble.com/

Kickstarter website:  http://www.kickstarter.com/

Articles on Pebble and Kickstarter:  

Forbes:  
http://www.forbes.com/sites/anthonykosner/2012/04/19/who-needs-venture-capital-pebble-smart-watch-raises-over-5-million-on-kickstarter/

GigaOM:  
http://gigaom.com/2012/04/18/forget-the-money-kickstarter-turns-pebble-into-a-platform/ 

Prior posts of crowdfunding: 

Wall Street Examining JOBS Financing Act: NY Times DealBookhttp://www.allenlatta.com/1/post/2012/04/wall-street-examining-jobs-financing-act-ny-times-dealbook.html 

JOBS Act Jeopardizes Safety Net For Investors: Andrew Ross Sorkin
http://www.allenlatta.com/1/post/2012/04/jobs-act-jeopardizes-safety-net-for-investors-andrew-ross-sorkin.html 

JOBS Fundraising Act to be Signed into Law on Thursday
http://www.allenlatta.com/1/post/2012/03/jobs-fundraising-act-to-be-signed-into-law-on-thursday-venturebeat.html

The JOBS Act is Good, But SarbOx Shouldn't Get All the Blame:  
http://www.allenlatta.com/1/post/2012/03/the-jobs-act-is-good-but-sarbox-shouldnt-get-all-the-blame-greg-gretsch-post.html 

Unintended Consequences of the JOBS Act: 
http://www.allenlatta.com/1/post/2012/03/unintended-contradictions-of-the-jobs-act-dan-primack.html 

Fundraising Bill Passes Senate:  
http://www.allenlatta.com/1/post/2012/03/fundraising-bill-passes-senate-enables-crowdfunding-and-eases-ipo-regulations.html