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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 money spent should add equity value or create IP that eventually will. Valuation.

Burn Rate 383
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Either would be fine with startups, so long as they can easily change their valuation. When I was raising money in late 1999 I had an investment team in Germany (I was in the UK) suggest that they should get a lower valuation than others because they were ex McKinsey guys and had better access to industry. I chuckled.

Finance 286
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An Open Letter to Startup Founders Everywhere in a Time of Crisis

David Cohen

In 1999, we sold that business and I started angel investing. Uber took the shockingly low valuation of $4m when raising it’s first $1.5m. 3m valuation. Less than a $2m valuation for their seed round. Other startups will fail, and you can acquire their talent, their IP, their customer bases for cheap.

Founder 174
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Time is the Enemy of All Deals

Both Sides of the Table

When I was raising money for my first company we had closed a seed round in 1999 and were working on our A round. We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. million at a $15 million pre-money valuation. It was December 1999. Let me start with a story.

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Top 120 Startup Posts for 2010

SoCal CTO

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.