article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Burn Rate 383
article thumbnail

The Great Coding School Rollup of 2015

Feld Thoughts

When I saw the proposal, I immediately thought of the web consulting rollups of 1999. revenue were the correct valuations since these are generally 5% to 10% net income businesses that are 30% – 40% gross margin and heavily dependent on (a) transitory labor and (b) favorable supply/demand conditions.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How and Why To Be an Angel Investor

David Teten

million households in the US with a net worth of $1 million or more. approx 1999-07. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. John Frankel started as an individual angel investor in New York in 1999. Angel Investment Activity, 2002-2013. 1961- 1996.

article thumbnail

Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. That’s a valuation number and pricing number. We led the investment in a new bank, their Series F, in 2019. Like that happens. . So the first one is Netflix.

Partner 132
article thumbnail

On the Road to Recap:

abovethecrowd.com

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one.

IPO 40
article thumbnail

Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Would that help retention and NPS (Net Promote Score)? The punchline of Chris’ argument is in the highlighted box, where he argues Procore is better off (having done an IPO and “as a result” of choosing the IPO), because Procore ended up with a valuation the day after the IPO of 20.5X Would they be loyal? Damn straight it would.

IPO 82
article thumbnail

The Case For & Against Cryptocurrencies (for those tired of all the noise)

Both Sides of the Table

I believe the massive valuation increases in cryptocurrencies we’ve witnessed of late are not based on any fundamentals other than speculation and a drive for a quick profit by many who have gained from the market hype. So Where Do I Personally Net Out? Regulation will come. boom where many companies had deeply inflated values.