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Burn Rate vs Runway

StartupCFO

Angels Growing Big Management Raising Capital Venture Capital Angel Burn Rate Fundraising mike cassidy XFireRecently a CEO in our portfolio asked me a question that I get often: As a startup with limited capital is it better to be cautious and stretch runway or should you be aggressive and reduce runway? We did that at Tungle.

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in. Valuation.

So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?”

The Harsh Truth About Startup Burn Rates

Fresh Inc.: The Staff Blog

Heed these warning signs that your company is spending too much

High Burn Rates Result in Short Startup Runways

Startup Professionals Musings

Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway).

Startup Runway Length Depends on Your Burn Rate

Startup Professionals Musings

Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway).

Don't Get Burned by Your Burn Rate

Fresh Inc.: The Staff Blog

It''s far too easy to get burned in the process, says Barry Schuler Companies are going through cash at an incredible pace.

The 7 Key Metrics Every Business Owner Should Monitor

Up and Running

For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. What Is Cash Flow?

When Burn Rate Outweighs Enthusiasm

Anything's Possible

Despite that nearly all venture-backed startups burn capital unsustainably, Uber’s level of spending is viewed as particularly problematic among its naysayers. It will be able to sustain its burn rate based on that excitement unless something surprising happens to its business, or it goes public. How is this possible? million.

How to Tell If Your Startup's Burn Rate Is OK

Fresh Inc.: The Staff Blog

Has the chatter about burn rates got you worried your company is spending too much money? Mattermark co-founder Danielle Morrill offers a self checkup

What's the Right Burn Rate for Your Company?

Fresh Inc.: The Staff Blog

Here''s a framework to help you determine how much money your startup should be spending each month

How You Should Really Think About Your Company's Burn Rate

Fresh Inc.: The Staff Blog

It''s easy to panic as your capital dwindles. Calm down: That money is not just fuel--it''s also opportunity untapped

8 Questions Investors Use to Bypass Startup Hype

Startup Professionals Musings

hype entrepreneur startup investor burn rate businessHow much “skin” is already in the game? What’s the total history of this company?

7 Questions for Determining the Right Burn Rate for Your Startup

Fresh Inc.: The Staff Blog

You shouldn't necessarily start raising capital right away

Burn Rate

charliecrystle.com

Fred posted on Burn Rate today. So keep a close eye on your cash, your burn, and your revenue. It's a good read--definitely go read it after this post. But Fred's example is based on a funded company, where the amount of investment is known and up front. And I usually did. Oops is right. It was a mistake I still regret today.

Rami Korhonen From PlayMySong On Optimizing Your Startup's Burn Rate

ArcticStartup

Your startup's cashflow is obviously crucial to keep your eye on so we spoke to Rami Korhonen, the CEO of PlayMySong, about how he optimizes their burn rate. Month to month their burn rate stays pretty consistent. Now it's pretty much the other way around. Hear it from startups.

10 Essentials for Setting Up Your Accounting Function

Early Growth Financial Services

More … Continue reading → Accounting Best Practices accounting function accounts payable accounts receivable burn rate business banking account cash burn chart of accounts coa collect payments entrepreneurs expenses online payments payment provider payments collection pre-funding startup startup accounting startup expenses startup taxe

Don’t Get Burned By Your Startup Burn Rate

Startup Professionals Musings

Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling.

Why High Burn Rates Don't Mean the End of the World Is Nigh

Fresh Inc.: The Staff Blog

Startups are burning cash at a staggering rate--while that''s not great, it may not be a sign of a bubble

ProfessorVC: Burn Rate

Professor VC

Burn Rate. The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. Burn Rate. ProfessorVC. Wednesday, July 22, 2009.

Burn Baby Burn

Fresh Inc.: The Staff Blog

Burn rates are skyrocketing for American startups, and that''s bad news in the long term

Why Smart Startup Founders Shouldn't Pay Themselves

Fresh Inc.: The Staff Blog

Investors want their investments to accelerate the company, not just maintain the status quo burn rate

Unicorpse

Feld Thoughts

Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.” That word is unicorpse.

Market Type and Revenue. 2 Minutes to Find Out Why

Steve Blank

This video describes how “Market Type” affects your revenue and your burn rate. Minute Lessons Market Types

What's Your Burn Rate Mean?

Ask The VC

5 Steps To Maximizing Your Startup Cash Flow Runway

Startup Professionals Musings

Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Burn Rate Norms

Thinking About Thinking

When investors and entrepreneurs talk about “burn rate”, they’re generally referring to the amount of cash a company consumes through its normal operations every month. For many venture-backed companies, they have a negative burn rate meaning that they are expending more cash than they are collecting.

The Resetting of the Startup Industry

Both Sides of the Table

The last few funding corrections saw many great companies disappear due to bad capital planning / high burn rates. Why does this matter?

Burn Baby Burn

A VC : Venture Capital and Technology

He focuses on burn rates instead. But burn rates are exactly that. Burning cash. We have multiple portfolio companies burning multiple millions of dollars a month. Regular readers know that I’m a huge fan of Bill’s. He’s as smart as they come and I generally agree with him on things.

The Rich Get Richer

A VC : Venture Capital and Technology

Round sizes have gone up and burn rates have gone up, but so much of this is limited to a hundred or a couple hundred companies.

Spending money is like getting fat

The Equity Kicker

As with weight, burn rates are very easy to increase but take large amounts of discipline and suffering to decrease. love the analogy.

After Funding, Watch Burn Rates And Beware The Tyranny Of Incrementalism

Anything's Possible

At first the team is small and the initial burn rate barely moves the dial on the capital raised. No one wants to feel underpaid, and how big a deal is an extra $10K a month to the company’s burn rate when one or two million dollars just hit the bank account. Be careful not to burn your own opportunity.

The No Stack Startup

A VC : Venture Capital and Technology

We like low capital requirements and low burn rates and extremely high rates of return on invested capital. There’s been a lot of discussion in recent years that the “full stack approach” is the future of startups. But like many things, the best approaches are at both ends of the spectrum.

What Is The Appropriate Time Horizon Of A Financial Model for VC’s?

Ask The VC

Early and pre-revenue:  Investors are going to be most interested in your near term burn rate and how long their money is going to last. In early cases, they are going to focus on cash / monthly-burn-rate. burn rate gross margin plan projections revenue vc

Numbers Can Ruin A Good Story

A VC : Venture Capital and Technology

You will also have a burn rate. As I was reading Josh Kopelman ‘s excellent post on the seed boom and Series A bust , I got thinking of some words of wisdom Mike Arrington once shared with me. He said “numbers always ruin a good story.” ” What Mike meant by this is you can raise a seed (or Series A) on a story.

7 Best Strategies for Maintaining Equity

Early Growth Financial Services

Of utmost concern to many entrepreneurs is how to retain maximum equity in their startups. Rightly so. It’s a constant balancing act: growing your company without losing control of it. Whether you’re funded, seeking funding, or still bootstrapping, here are some of the best strategies for avoiding dilution and maintaining maximum equity: 1.

How losing a co-founder and most of our team saved our company

The Next Web

There we were, $1.1 We knew we had to make some hard decisions, or our company wouldn’t last the next few months.

What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

” It goes like this: What is your net burn rate? But I’m certainly willing to say RIP Excess Burn. Does this suck?

The Full Dataset on What VCs are Thinking About Funding in 2016

Both Sides of the Table

Every year at Upfront we try to analyze the venture markets. We try to look at the sources of capital, the valuations, exits and trends. VC Industry

LP 140

I Was A Lousy Board Member Yesterday

Feld Thoughts

I have been to thousands of board meetings. Maybe tens of thousands. I’ve done them in person, on the phone, and on video conference.