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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. Valuation. I wanted to call out special attention to valuation in this debate.

Burn Rate 383
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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. This is a little tricky in early rounds and with modest up-round financings, as you’ll often have a liquidation preference that is high relative to your overall valuation.

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Capital Market Climate Change

Ben's Blog

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/1999: 49.7. And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

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Capital Market Climate Change

Ben's Blog

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/1999: 49.7 And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

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Market Truths

thebarefootvc

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved.

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Market Truths

thebarefootvc

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved.

article thumbnail

Market Truths

thebarefootvc

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved.