Remove 1997 Remove Cost Remove Engineer Remove Revenue
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000.

Burn Rate 383
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class.

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Leadership Lessons To Help Guide You To Excellence

Duct Tape Marketing

That makes me sound like a genius today, But the point was 25 years ago that when you went to work for Hewlett, what's 25 years ago is 97, when you went to work for Hewlett Packard in 1997, you expected to be there for the next 40 years. And the three rules were revenue before cost, uh, I don't know, quality before, whatever.

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How Falling In Love With My Product Killed My Business

Software By Rob

Rogue Wave’s fall began during Java’s rise to power in 1997-8. When everyone took notice of Java and abandoned C++ in droves, Rogue Wave’s revenues plummeted. They still saw their license revenue coming in, albeit a little lower each quarter. Their smart engineering team hunted for C++ products to build and market.

Java 66
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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

Freeloader — On $3m invested, sold for $38m in 1996 — shut down in 1997. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. Support.com — On 2.5m invested, IPO’ed in 2000 for $32/share — stock price now $2.

IPO 240
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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Warren Buffet, 1997. According to an interview with Elon Musk, this campaign cost Paypal about $60 million , which most Silicon Valley historians would consider money well spent. It would cost a tremendous amount of money to run such a program. With the 7% banker fee that is a 35% AVERAGE cost of capital.

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The pioneers of Silicon Valley’s fast culture on how to grow quickly, not recklessly

Reid Hoffman

And from a financial perspective, any investor would be better off buying stock in Amazon than buying and share of a corner bookshop; if you invested $100 in Amazon’s 1997 initial public offering (IPO), those shares would have been worth about $120,000 in 2018. And, as the industrial revolution showed us, there are some real costs to scale.