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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. Many venture debt lines have “covenants” that restrict you from going below a certain amount of cash in the bank (in normal times they are more common – in better times they are less common).

Burn Rate 383
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Assessing The State Of And Options For Your Business During COVID-19 Fallout

YoungUpstarts

This means: compiling a balance sheet, listing all of your assets, all of your payables (or “liabilities”), including what may become a liability down the road (i.e., A “reorganization” that enables management to stay in control of the business, but wipes out equity if creditors are not paid in full. Chapter 11.