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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. But software companies often take longer to scale top-line revenue than retailers so it takes a while to cover your nut.

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What’s a Fair 409A Discount?

VC Adventure

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

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Diverse Lead Firms

Austin Startup

We focus primarily on software and Internet companies in areas such as SaaS, application software, financial software, consumer internet, and online marketplaces. These sectors generally leverage the Internet or software in a fundamental way. That drives every decision we make.

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Big markets are spinning up and disappearing faster and faster

The Equity Kicker

Word processing software – the market took off in the 1980s and is now in substantial decline due to Google Docs and Evernote. Blogging got going in about 2005 before Twitter and a collection of other sites took the wind out of it’s sales over the last three years or so. Other examples I can think of include.

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Twitter Link Roundup #115 – Small Business, Social Media, Design, Copywriting, Marketing And More

crowdSPRING Blog

Five Tips To Improve Employee Performance Reviews – [link]. Five Tips To Improve Employee Performance Reviews – [link]. Experienced entrepreneurs preserve equity – [link]. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template tco use today) – [link]. – [link].

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. 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. And well they should be.

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@altgate » Blog Archive » Outsourcing For Startups

Altgate

The presentation was on outsourcing generally, not just software engineering and the audience was very early stage companies (some yet to be founded). For example, you can barter for a service or you can negotiate payment terms or even equity for service. To that I say baloney. Even without cash you have many ways to outsource.