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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. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet.

Burn Rate 383
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WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

Of course a nice chunk is primary capital, i.e. for the company balance sheet, to invest in growth initiatives, security and quality, and advancing our existing strategic priorities through acceleration and de-risking. The majority of the funds pay back our early investors who believed in us enough to trust us with their money.

Engineer 152
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Does the Size of a VC Fund Matter?

Both Sides of the Table

It in not uncommon to see a VC talk about “total assets under management&# as in “We have $1.5 billion under management.&# I don’t really understand why VCs do this since it’s mostly a meaningless number. What is total assets under management? - Most funds get annual extensions.

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Cash Flow Matters: Accounts Receivable Financing Fuels New Model Of Working Capital

YoungUpstarts

In fact, your start-up needs are typically in direct opposition of your customers, as each entity works to manage its own working capital requirements. It can be a hard lesson in cash management, sometimes catching a young enterprise off guard. trillion in global annual volume in 2013, a nearly five percent increase compared to 2012.

Finance 196
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Ten Ways To Keep Cash Flow Problems From Putting You Out Of Business

YoungUpstarts

Tracy , authors of “ Cash Flow For Dummies® “ Every small business owner knows the trouble that comes with managing the ins and outs (pun intended!) If a business is earning a profit, many business managers simply assume that cash flow is satisfactory. Manage your disbursements cycle. Balance the balance sheet.

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Monthly Financials, Quarterly Board Meetings, Continuous Communications

Feld Thoughts

The way most board meetings are currently conducted is a waste of time for management, significantly inefficient, and generally ineffective. Send out monthly financials (Income Statement, Balance Sheet, Cash Flow) with a written analysis of them. But for now, I’ll give you three specific things to change.

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Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)

Haystack

price tag squeezed out by BlackBerry represented *over half* of the actual cash reserves it had sitting on its balance sheet. 1/ A Pre-Seed Reminder: According to Crunchbase, PlanGrid was founded and went through Y Combinator in 2012. 1/ Cash Is King: The $1.4B and Thoma Bravo took over Veracode for $950M.