Steve Blank

FEBRUARY 22, 2010

Managing the Business. One of the ways our VC’s kept track of our progress was by taking a monthly look at three financial documents: Income Statement, Balance Sheet and Cash Flow Statement. To be clear – Income Statements, Balance Sheets and Cash Flow Statements are really important at two points in your startup.

Balance Sheet 300

Balance Sheet Startup Burn Rate Metrics 300

Berkonomics

JULY 1, 2021

First, the VC’s ordered that the company ramp its burn rate (monthly losses in cash) to over $800,000 a month, which I could not fathom. We members of the board never saw, (never asked) and the CFO never mentioned the balance sheet and cash position. For me this was nuts. The moral is simple. .

Balance Sheet 62

Balance Sheet Cofounder Cash Position Burn Rate 62

Steve Blank

FEBRUARY 16, 2010

The Appendix of your business plan has one of the leading cause of death of startups: the financial spreadsheets you attached as your Income Statement, Balance Sheets and Cash Flow Statements. Spread out in front of everyone around the conference table were the latest Income Statement, Balance Sheets and Cash Flow Statements.

Revenue 231

Revenue Balance Sheet Hockey Stick Burn Rate 231

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. There are no standards for what each side (board versus management) does.

Silicon Valley 292

Silicon Valley Business Model Venture Capital Balance Sheet 292

Both Sides of the Table

JUNE 17, 2017

If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. They don’t want high burn rates but they will never fund slow growth. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk?

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. There are no standards for what each side (board versus management) does.

Silicon Valley 263

Silicon Valley Business Model Venture Capital Balance Sheet 263

Berkonomics

DECEMBER 18, 2014

First, the VC’s ordered that the company ramp its burn rate (monthly losses in cash) to over $800,000, which I could not fathom. We never saw, and he never mentioned the balance sheet and cash position. So those expenditures were not reviewed by the board which had not been given a balance sheet to examine.

Balance Sheet 71

Balance Sheet Burn Rate Cash Position Forecast 71