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Is the Lean Startup Dead?

Steve Blank

NewTV will depend on partners like telcos to distribute the content. Given Verizon just shut down Go90 , its short form content video service, it will be interesting to see if Verizon distributes Katzenberg’s offerings.). Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money.

Lean 335
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2023-2024 B2B SaaS Benchmarks

VC Cafe

Burn Rate Definition: Burn rate is the rate at which a startup is spending its capital to finance operations before generating positive cash flow. Benchmark: Serena Capital advises B2B SaaS startups to target a gross margin of 80% or higher to demonstrate the scalability and profitability of their business model.

B2B 78
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Use agile budgeting to manage your cash

David Teten

Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. Peter Nesbitt, VP of Finance at Teampay , said, “Forecasting is exceptionally challenging in practice, especially as end users drive an era of distributed spending.

Agile 60
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Lean Startups aren't Cheap Startups

Steve Blank

The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. And most startup code and features end up on the floor as customers never really wanted them.

Lean 260
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How much does it cost to build the world’s hottest startups?

The Next Web

Considering Facebook’s scale, the company is now in the business of operating power plants to operate its servers, therefore, Schippers estimates that Facebook has a $30 million dollar monthly burn rate just for hosting. There’s also the enormous looming cost of distribution — one that’s hard to measure and even harder to predict.

Cost 168
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How to Manage Cash Flow With Accurate Cash Flow Forecast

Up and Running

This may sound extreme, but ask anyone who’s ever distributed a product to retail stores and they will tell you that this is much more the rule, rather than the exception. You’ll understand your cash burn rate and runway which is a critical prediction of how long your cash will last.

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Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

This past year was also the year that startup boards also got more disciplined about containing burn rates and pushing for companies to be run more pragmatically. So if funding from VCs slowed, valuations dropped and burn rates were slashed, WTF happened to winter again? This chart surprised me the most.