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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. (it is also the title of a fabulous book from Internet 1.0 Think DropBox, Airbnb, Uber, Maker Studios.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

New investors hate down rounds. An obvious example is Google who may have gotten less market attention if there would have been 8 well-financed competitors during the 2001-2005 timeframe. They will enter the “triage phase&# of the market where they figure out which of their existing deals will survive. That’s a fact.

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How to Fund a Startup

www.paulgraham.com

November 2005 Venture funding works like gears. A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Down rounds are bad news; it is generally the common stockholders who take the hit.