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. But the CFO let the spending rate continue to increase out of balance with the board-approved budget which projected revenues to ramp, reducing the monthly cash burn.

Balance Sheet 62

Balance Sheet Cofounder Cash Position Burn Rate 62

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. 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.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Feld Thoughts

SEPTEMBER 9, 2015

Others, Lee acknowledged, may never see their balance sheets add enough zeros to justify the title. Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.” I once was on the board of a company that had generated lifetime revenue of $1.5m

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

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. But the CFO let the spending rate continue to increase out of balance with the board-approved budget which projected revenues to ramp, reducing the monthly cash burn.

Balance Sheet 71

Balance Sheet Burn Rate Cash Position Forecast 71

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Optimize for a W more than % dilution in these circumstances.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

Both Sides of the Table

MARCH 30, 2016

Invoca was raising at the tail end of this market phenomenon at this time doing tens of millions in SaaS recurring revenue and growing at a nice clip. Here are some stats to give you a sense: • Year over year revenue grew 51% in 2015 and we’re forecasting the same again for 2016. forward revenue for public comps (comparable stocks).

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Professor VC

AUGUST 26, 2011

To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. Does a complicated sales build model make sense for a pre-revenue SaaS company? I often do this in the revenue tab.

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. Companies raised too much money in 2005-08 and had high burn rates. When I first got into the industry it was 2007. Valuations were enormous relative to progress in companies. was still a term being bandied about.

Stock 305

Stock Technical Review Marketing Greece 305