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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.

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Anatomy of an Innovation-friendly School

This is going to be BIG.

They netted more on that deal than Fordham has in it's whole endowment (but still, go Rams!). You just don't wind up with $25 million to name a dorm unless you've gotten equity upside in something. On top of that, most of a school's major donors are likely to be entrepreneurs in some way.

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Don’t Sleep on Lightning

Version One Ventures

Given these key advantages, I believe that Lightning (or something like it) will ultimately eat all of the USD payment networks and create the foundation for MoIP (Money over IP). . One major player pushing forward this vision is Jack Mallers’ Strike , a simple app that allows anyone to use the Lightning Network with a USD bank account.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. You own the IP you create. He is the majority owner.

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Corporate Bad Activity Against Innovators

Feld Thoughts

I was going to write about how the FCC’s potential action on net neutrality could seriously jeopardize Internet innovation, but Fred Wilson beat me to it (he’s got an east coast time advantage over me) with a phenomenal post titled The Fast Lane, The Slow Lane, and The No Lane.

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Startup Founder Agreements

blog.simeonov.com

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. Some get common equity for their investment.

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A Complete Guide to Account-Based Marketing: Win Over Your Ideal Customer

ConversionXL

ABM takes you from fishing with nets to fishing with a spear. The more brand equity you have, the easier it will be to get customers onside. Tools for IP-targeted ads: MRP ; Terminus. That’s how account-based marketing got its name. Because of this, even a small deal may warrant a one-to-one marketing approach.