Burn Rate Demand Revenue Venture Capital 
Both Sides of the Table
MAY 28, 2018
Founder: “$8–10 million” VC: “What’s your current burn rate?” VC: “So at a constant rate of burn rate you’d be raising enough for 2.5–3 If you’ve raised $3 million previously, have $250k in monthly recurring revenue and 23 staff an $8–10 million round might be more down the fairway. Founder: “Um.
Startup Professionals Musings
OCTOBER 16, 2023
Yet every business requires revenue and volumes, as certainly as it requires a product to sell. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Doubling revenue each year is a good target. This allows a quick analysis of price change and revenue impacts.
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Startup Professionals Musings
FEBRUARY 5, 2021
Yet every business requires revenue and volumes, as certainly as it requires a product to sell. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Doubling revenue each year is a good target. This allows a quick analysis of price change and revenue impacts.
David Teten
NOVEMBER 26, 2019
Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. The next most important set of metrics are sales by category; working capital (cash and other current assets, less current liabilities); EBITA; and gross margin.
Both Sides of the Table
JUNE 17, 2017
70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. They don’t want high burn rates but they will never fund slow growth. The Nature of Revenue Matters Of course revenue alone won’t tell you enough.
Steve Blank
SEPTEMBER 7, 2009
Instead of a Sales team and organized to sell with a consistent and successful sales roadmap generating revenue, it is a disorganized and unhappy organization burning lots of cash. Because the company based its headcount and expenses on the expectation that the Sales organization will bring in revenue according to plan.
Startup Professionals Musings
JANUARY 4, 2015
Yet every business requires revenue and volumes, as certainly as it requires a product to sell. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Doubling revenue each year is a good target. This allows a quick analysis of price change and revenue impacts.
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