Both Sides of the Table
SEPTEMBER 28, 2014
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.
Both Sides of the Table
DECEMBER 27, 2011
If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year.
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Both Sides of the Table
JANUARY 5, 2010
If this idea was so big then why would they risk not being first to market, not building defensible IP for the sake of a few hundred thousand dollars extra in lock-up money at a big company? Partners in VC funds only wanted to fund entrepreneurs who had a certain percentage of their net worth tied up in their venture. Not my problem.
Both Sides of the Table
APRIL 25, 2011
It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. You own the IP you create. My advice wasn’t to shut down all product / IP initiatives but rather to be clear on their purpose and how to monetize them. That is $12 million in profits over 3 years.
Both Sides of the Table
SEPTEMBER 15, 2013
Selling at smaller retailers will net you fewer customers and higher margins. Give access to music that is legal, avoiding lawsuits and ensuring revenue isn’t captured by other IP owners. Offer tools to allow content producers to build their own websites & mobile apps.
Both Sides of the Table
APRIL 27, 2010
I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. They seed funded my second company and even let me buy some IP in exchange for debt to get started.
Both Sides of the Table
JUNE 8, 2014
To interconnect these computers we needed IP-based telecommunications equipment build by the likes of Cisco Systems and Juniper Networks. The problem that I’ve seen historically in cities like Los Angeles, San Diego or Seattle is that their historic high-net-worth individuals didn’t come from the tech startup world.
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