Startup Professionals Musings

MARCH 22, 2011

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Projecting, tracking, and controlling cash flow is the single most important job of the CEO and all other startup officers. For even more value, you should develop a financial model. Cash flow is king.

Forecast 230

Forecast Burn Rate Startup .Net 230

Steve Blank

FEBRUARY 11, 2010

The Customer Development process is the way startups quickly iterate and test each element of their business model , reducing customer and market risk. In Discovery startups take all their hypotheses about the business model: product, market, customers, channel, etc. Six is a Proxy for Burn Rate.

Burn Rate 248

Burn Rate Silicon Valley Marketing Boston 248

Startup Professionals Musings

JUNE 9, 2012

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Projecting, tracking, and controlling cash flow is the single most important job of the CEO and all other startup officers. For even more value, you should develop a financial model. Cash flow is king.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Startup Professionals Musings

JULY 15, 2013

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Projecting, tracking, and controlling cash flow is the single most important job of the CEO and all other startup officers. For even more value, you should develop a financial model. Cash flow is king.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

ReadWriteStart

JULY 9, 2023

Startups are romanticized, and sometimes it’s misleading for people who want to launch their own company. Mostly, stories about startups revolve around dropping out of university, from zero to hero narratives, and other quite fairytale-like ideas. A newcomer to the startup market may simply have no idea about all the nuances.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

Startup Professionals Musings

MARCH 25, 2010

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Projecting, tracking, and controlling cash flow is the single most important job of the CEO and all other startup officers. For even more value, you should develop a financial model. Cash flow is king.

Forecast 151

Forecast Startup Burn Rate .Net 151

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Tim Keane

DECEMBER 14, 2009

Startups and angels: Along the way to success. Starting Startups.    Read   Want to Start a Startup ?   A way to fund a startup is to get a job.    Interestingly, the consulting business remained and is a mainstay even today.  Starting Startups.   Amen.

Burn Rate 60

Burn Rate Angel Groups Seed Stage Startup 60

Startup Professionals Musings

DECEMBER 15, 2014

In my experience, that’s actually the worst way to start, for reasons I will outline here, and also the least common way, according to an authoritative survey of new startups. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Steve Blank

FEBRUARY 22, 2010

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Up and Running

APRIL 27, 2020

There’s a great amount of uncertainty, people losing their jobs, and a direct hit on cash flows that can place businesses in dire straights. Current businesses are finding ways to pivot their business models, revisiting their budgets, and developing new forecasts to minimize their burn rate and maximize their available cash runway.

Software Review 113

Software Review Lean Forecast Business Plan 113

Startup Professionals Musings

JUNE 28, 2013

In my experience, that’s actually the worst way to start, for reasons I will outline here, and also the least common way, according to a recent survey of new startups. Based on the latest Startup Environment Index from the Kauffman Foundation and LegalZoom, personal money, or bootstrapping, continued to be the primary startup funding in 2012.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

Steve Blank

NOVEMBER 18, 2010

For decades startups were managed by pretending the company would follow a predictable path (revenue plan, scale, etc.) Luckily most startups now realize there is a better way. Startups Are Not Small Versions of Large Companies. The revenue numbers and revenue model came from a startups original Business Plan.

Burn Rate 247

Burn Rate Management Business Model Customer Development 247

Startup Professionals Musings

AUGUST 14, 2015

One preparation example is the value of building a business plan before you start. A popular startup myth claims you don’t need one, since investors never read them. The reality is that if you are only doing a business plan for investors, you are already in trouble. Define success as it relates to this startup.

Elevator Pitch 120

Elevator Pitch Burn Rate Startup Metrics 120

Gust

DECEMBER 7, 2014

In my experience, that’s actually the worst way to start, for reasons I will outline here, and also the least common way, according to an authoritative survey of new startups. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Steve Blank

JUNE 1, 2011

As customer and agile development reinvent the Startup, it’s time to ask why startup board governance has not kept up with the pace of innovation. Board meetings that guide startups haven’t changed since the early 1900’s. The combination of Venture Capital and technology startups is only about 50 years old. Here’s how.

Silicon Valley 290

Silicon Valley Business Model Venture Capital Balance Sheet 290

www.chubbybrain.com

SEPTEMBER 28, 2011

25 Best Startup Failure Post-Mortems of All Time. Update – As a followup, we analyzed all of these startup failure post-mortems to identify the top 20 reasons for startup failure. Also worth a read after you review these startup failure post-mortems. Post-Mortem Title : How My Startup Failed.

Software Review 79

Software Review Startup Technical Review Vesting 79

Steve Blank

JUNE 1, 2011

As customer and agile development reinvent the Startup, it’s time to ask why startup board governance has not kept up with the pace of innovation. Board meetings that guide startups haven’t changed since the early 1900’s. The combination of Venture Capital and technology startups is only about 50 years old. Here’s how.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

YoungUpstarts

MAY 20, 2015

As such, its important for every startup to develop its services with the anticipation of success, creating a plan for how to scale when the time comes. We spoke with eight successful startup CEOs and asked what methods they used for scaling their services to meet increasing demand. It’s how startup should tap the markets they target.

Colombia 100

Colombia Burn Rate Startup Agile 100

Steve Blank

AUGUST 27, 2012

Knowing how to sort between vision and hallucination can avoid chaos inside your startup. Tossing their agile development process and at times their entire business model in the air, the company would go into fire-drill mode and engineering would start working on whatever his latest insight was. We got to pivot now.”

Founder 316

Founder Cofounder Advisory Board Burn Rate 316

Startup Professionals Musings

AUGUST 7, 2015

Large and growing markets imply a high startup growth potential, with high odds of scaling and success. How the solution and business model work to fund the business. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

AUGUST 27, 2012

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Up and Running

SEPTEMBER 17, 2014

Cash is the life-blood of any startup, and you should always have a pulse on how much of it you have left and how long it’s going to last. After all, a sustainable business model requires repeat customers! Managing a Business Starting a Business Strategy entrepreneur entrepreneurship startup YEC yec.co

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

YoungUpstarts

JANUARY 9, 2017

To prepare for a successful startup, it is best to plan ahead. Depending on the type of business, this includes everything from legal, machinery, equipment, inventory, overhead, and domain name, to web services. This will also prepare your business for filing taxes. Estimate your monthly “burn rate.”

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

Both Sides of the Table

FEBRUARY 14, 2016

” “Mark has a vested interest in talking down valuations of startups.” Most prefer not to say this publicly for two reasons: 1) they have an entire portfolio of startups, many of whom are raising capital and 2) they prefer not to be attacked publicly or seem “anti entrepreneur.” goes into a startup.

Valuation 150

Valuation Down Round Startup Later Stage 150

Startup Professionals Musings

JUNE 10, 2011

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Startup Professionals Musings

MAY 19, 2010

As a member of the local angel group Selection Committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short - maybe short on content, but not short on pages! Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

abovethecrowd.com

FEBRUARY 24, 2015

Despite this, startups commonly highlight “gross revenue” even when 80+% goes out the door for every single transaction. As these late-stage private companies digest these large fund raises, they are pushing profitability further and further into the future, as well as the proof that their business model actually works.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

YoungUpstarts

JANUARY 11, 2018

by Courtney Reum and Carter Reum, co-authors of “ Shortcut Your Startup: Speed Up Success with Unconventional Advice from the Trenches “ Too often we see leaders who have the entrepreneurial instinct to move quickly go wide before they’ve nailed the most crucial early steps.

Los Angeles 133

Los Angeles Investment Bankers Cofounder Viral 133

Early Growth Financial Services

MARCH 26, 2013

Startups are often in a rush: bigger, better, faster. I see it all the time: businesses striving to scale, to accelerate the growth of their business as quickly as possible—consequences be damned! Scaling is certainly a goal for businesses at some point, but scaling as soon as possible isn’t the answer.

Burn Rate 53

Burn Rate Startup Business Model Finance 53

Gust

AUGUST 19, 2012

As a member of the local Angel group selection committee, I’ve seen a lot of startup presentations to investors, and I’ve never seen one that was too short – maybe short on content, but not short on pages! Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

philipsmith.typepad.com

SEPTEMBER 24, 2011

In-the-Trenches Consulting to Startup and Emerging-Growth Companies. Working for equity only is, realistically, the way most startups have to get going. a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

Startup Lessons Learned

MARCH 13, 2009

Lessons Learned by Eric Ries Friday, March 13, 2009 Dont launch Heres a common question I get from startups, especially in the early stages: when should we launch? In fact, in most situations its a bad idea for startups to synchronize these events. Most startups arent so fortunate. You have to know your business model.

San Francisco 168

San Francisco PR Lean Early Stage 168

ReadWriteStart

JUNE 13, 2011

As customer and agile development reinvent the startup, it's time to ask why startup board governance has not kept up with the pace of innovation. Board meetings that guide startups haven't changed since the early 1900's. The combination of Venture Capital and technology startups is only about 50 years old. Here's how.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Professor VC

SEPTEMBER 26, 2011

Dan Frommer, in Moneyball for tech startups , interviewed Fred Wilson, Chris Dixon, Paul Graham and Ben Horowitz on the topic. I've actually done a post making the analogy between RSCM and Moneyball as explicit as possible: https://possibleinsight.wordpress.com/2011/09/27/moneyball-for-tech-startups-kevins-remix/. Thanks Steve.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

JANUARY 27, 2011

There are so many unknowns at this stage and the only known is that the business model is going to change at least once, or in the current most overused term in the Silicon Valley, there will be a "pivot". The written style is very prompt and the highly practical manners. work at home. May 1, 2011 10:32 PM. Richard Shatto.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

Professor VC

NOVEMBER 14, 2011

Im an active participant on AngelList a fan of the excellent accelerator programs ( YCombinator , 500 Startups , TechStars , AngelPad, etc.), Crowdfunding will likely be well received by scam artists and lead to many startup investment pitches in your spam folder along with those for viagra and male enhancement. 7 comments: Dave.

SEC 54

SEC San Jose Angel Investor Accredited Investor 54