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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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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

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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). . And >40% of that revenue is coming from in-game purchases. The app could then take a small % of all revenue from “paid” messages.

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What to consider when entering into product collaboration

NZ Entrepreneur

Product collaborations involve a range of intellectual property (IP) and other commercial issues. What IP is being licensed? Will any new IP be created and, if so, who should own it and who should be allowed to use it? This usually includes a royalty based on the net sales amounts received by the manufacturing party.

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Disturbing

Austin Startup

I will always remember his pre-speech pep talk: “Dyer, your entire net worth rides on not screwing this up.” Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. I got the message.

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How to Improve Profit by an Average of 11.1%

Austin Startup

A 1992 study from the Harvard Business Review found that the right pricing changes can drive revenue and profit improvements faster than any other growth lever — faster than increasing the volume of sales or decreasing costs. At worst you will destroy hard earned revenue and/or profit. The importance of price. Let’s break this down.

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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Along with Greycroft Partners we were the first investors in Maker Studios 3 years ago when the company had no revenue and limited infrastructure. but not that this justifies take a 45% revenue share. Industry averages for talent revenue shares are about 70% with top talent making even more. ” YouTube takes 45%.