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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. Gross Burn vs. Net Burn.

Burn Rate 383
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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

These are people that didn’t make their money through a tech startup or startup investing. Some of these folks are founders and CEOs, but not at high-growth tech startups. On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation.

.Net 88
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8 Keys To Maximizing Your New Venture Stock Net Worth

Startup Professionals Musings

Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ).

Stock 240
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Leaving Government for the Private Sector – Part 2

Steve Blank

They have enough confidence in themselves to leave without the safety net of a future pension as well as the energy, ambition, and know-how to navigate uncertainty. Advisory Board members are often paid in a balance of equity (stock options) and cash (“cash” is the industry term for money wired to your bank account). They need you.

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10 Ways To Get The Capital You Need For Your Startup

Startup Professionals Musings

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Equity 266
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How to Wisely Utilize Debt for Business Expansion

The Startup Magazine

It compares a company’s net operating income to its debt payments, providing insight into its repayment capacity. Mitigate Risks Associated with Debt Building a financial safety net is essential. Key metrics to track may include revenue growth, profit margins, cash flow, debt-to-equity ratio, and return on investment.

Finance 122
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How Well Versed Are You In Startup Investor Jargon?

Startup Professionals Musings

Whether you are talking to peers, competitors or investors, you as an active entrepreneur will be judged on your familiarity with today’s startup and funding jargon. This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Could your startup be the next one? Sweat equity.