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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

Burn Rate 383
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Is the Lean Startup Dead?

Steve Blank

It’s the antithesis of the Lean Startup. Most entrepreneurs today don’t remember the Dot-Com bubble of 1995 or the Dot-Com crash that followed in 2000. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. The Rise of the Lean Startup. And it may work. IPOs dried up.

Lean 335
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7 Tips To Keep Your Business Afloat During COVID-19

YoungUpstarts

Analyze your ongoing burn-rate in both normal scenarios and ‘bear-bones’ scenarios. Consider where you can optimize your burn rate. The key is to run as lean as possible without sacrificing quality. Look at this quarantine as an opportunity to level-up as an entrepreneur.

Burn Rate 261
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Why More Funding Won’t Magically Fix Your Startup

Mucker Lab

Some entrepreneurs think that (more) money will solve all their company’s problems. Or, you feel like you have so much cash that you can afford to burn it until your original idea eventually works. Sometimes founders misapply lean startup methodology. More and more investors have begun to shun high burn rates.

Startup 78
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Are Business Plans Still Necessary?

Both Sides of the Table

There were tons of young entrepreneurs showing their latest Web 2.0 The last couple of years has also seen the huge initial success of Ycombinator, the Lean Startup and many other product driven approaches to going to market. Don’t know the running rate for engineers? Too aggressive about the rate of customer adoption?

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Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

Ari Newman is an entrepreneur, mentor, investor, and a friend. He works at Techstars where his responsibility is to ensure that the connections between alumni, mentors, and staff are as robust as they can be – helping entrepreneurs “ do more faster ” day in and day out. The plan would have to get way tighter, way faster.

Burn Rate 152
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10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

Eighty percent of new entrepreneurs use this approach, with only six percent using investor funding. The remaining entrepreneurs borrow from family and friends, or acquire a loan. Count on several months of effort and costly assistance to court investors, with less than a 10% success rate.