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Is the Lean Startup Dead?

Steve Blank

These bubble startups were actually guessing at their business model and did premature and aggressive hype and early company launches and had extremely high burn rates – all predicated on an IPO to raise more cash. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money.

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The Virus Survival Strategy For Your Startup

Steve Blank

The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month.

Burn Rate 436
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Cram Down – A Test of Character for VCs and Founders

Steve Blank

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. They’re Back.

Cram Down 404
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10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. 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. Sometimes survival requires staying under the radar.

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Adding Slides Does Not Enhance Your Investor Pitch

Startup Professionals Musings

Investors like $1B markets with double-digit growth rates. Business model. What is the current valuation of the company? Show breakeven point, burn rate, and growth assumptions. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Financial projections.

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8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

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. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

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10 Reasons for a Startup to Skip Outside Investors

Startup Professionals Musings

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. 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. Sometimes survival requires staying under the radar.

Startup 264