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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 next sale isn’t quite as sweet.). We have never been in a stronger position.

Engineer 152
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Bridging the gap between tech startups and the Fortune 500

David Teten

Some corporations emulate this model by creating their own wholly-owned VC entities, typically with one LP: the corporate balance sheet. According to CB Insights, since the start of 2012, the most active corporate VCs are: Dell Innovators Credit Fund (not listed) is an unusual take on this model. 2) Contests.

Startup 114
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Does the Size of a VC Fund Matter?

Both Sides of the Table

VC’s raise this money from university endowments, public & private pension funds, insurance companies, banks who invest from their balance sheet or that of their wealthy clients, “family offices&# which means money from very wealthy people, etc. And funds also have investments from the partners of the firm.

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

YoungUpstarts

Read on to learn what you can do to make 2012 the year of the cash flow reboot for your business: Respect and understand financial statements. Balance the balance sheet. Let 2012 be the year you place a renewed focus on properly managing your cash flows. But even if profit is good, cash flow can be bad.

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Chewy S-1: Category Leadership + Conveyor Belt Into Consumers’ Homes

View from Seed

Chewy sells tens of thousands of products from many 3rd party brands, as well as its own private label brands (though latter remains <10% of sales). Average revenue per customer has steadily increased from $223/yr in 2012 to $334/yr in 2018. Annual Net Sales By Customer Cohort.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

Finance 134