Burn Rate Customer Customer Development Metrics 
Steve Blank
SEPTEMBER 5, 2018
Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital. ” Fire, Ready, Aim. IPOs dried up.
View from Seed
OCTOBER 24, 2019
As a first time founder, having a few million dollars in the bank after a successful seed raise may seem like a huge amount of capital, and it’s easy to lose discipline around your burn rate. Unlike in B2B, you don’t necessarily want to use a second-seed round to get to metrics that every investor will appreciate.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Feld Thoughts
NOVEMBER 18, 2013
Early customer development talks are going great which keeps the team really excited. Three months in, the burn is now at $70k/month. No updates, screen comps, or metrics have been publicly shared yet. Soundbites from potential customers are encouraging. Investors are dismayed that there are no real customers yet.
Steve Blank
FEBRUARY 22, 2010
As a founder you are testing a series of hypotheses about all the pieces of the business model: Who are the customers/users? An early indication that you’ve found the right business model is when you believe the cost of getting customers will be less than the revenues the customers will generate. Startup Metrics.
Startup Lessons Learned
JANUARY 30, 2009
Here are a few: We know what customers want. By hiring experts, conducting lots of focus groups, and executing to a detailed plan, the company became deluded that it knew what customers wanted. But that was two full years before any customers were allowed to use it. Stealth is a customer-free zone.
Startup Lessons Learned
MARCH 27, 2009
The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). Were talking PayPal -sized variations.
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. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. The Wrong Metrics. Jonathan Swift. Not Real-time.
Expert insights. Personalized for you.
335 
Let's personalize your content