Both Sides of the Table

OCTOBER 14, 2015

But like many companies over the past five years it hired aggressively and probably had some degree of straying off of a core strategy and some amount of excess jobs relative to its current revenue forecasts and opportunities. ” It goes like this: What is your net burn rate? What is your cash balance?

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Startup Professionals Musings

JULY 15, 2013

They need to realize that investors ask for projections, not merely as predictions, but more as commitments from the founder and his team. This forecast is really their commitment. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Plan to re-forecast every quarter.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

Berkonomics

JULY 1, 2021

Here’s one that most small company founders and CEO’s miss until it may be too late. I recently coached a CFO in a small company to urge the CEO to stop working upon the operational issues and focus upon the future, even if that meant a pivot to protect the business as the world was changing in that industry at an accelerated rate.

Balance Sheet 62

Balance Sheet Cofounder Cash Position Burn Rate 62

VC Cafe

NOVEMBER 2, 2019

Forecasting is sometimes done by dragging the mouse based on many assumptions, because it’s hard to predict the future. One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate?

B2C 141

B2C Technical Review Startup Retention 141

Berkonomics

DECEMBER 18, 2014

First, the VC’s ordered that the company ramp its burn rate (monthly losses in cash) to over $800,000, which I could not fathom. But the CFO let the spending rate continue to increase out of balance with the board-approved budget which projected revenues to ramp, reducing the monthly cash burn.

Balance Sheet 71

Balance Sheet Burn Rate Cash Position Forecast 71

Startup Professionals Musings

JUNE 9, 2012

They need to realize that investors ask for projections, not merely as predictions, but more as commitments from the founder and his team. This forecast is really their commitment. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Plan to re-forecast every quarter.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Startup Professionals Musings

MARCH 22, 2011

They need to realize that investors ask for projections, not merely as predictions, but more as commitments from the founder and his team. This forecast is really their commitment. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Plan to re-forecast every quarter.

Forecast 230

Forecast Burn Rate Startup .Net 230

Up and Running

AUGUST 21, 2014

What a lot of companies or startups don’t realize is when you put up forecast together, it’s difficult if you’re a startup. The other thing that they’re going to ask you is average revenue per account or per user or per customer. It’s what’s going to make you most attractive to an investor.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Startup Professionals Musings

MARCH 25, 2010

They need to realize that investors ask for projections, not merely as predictions, but more as commitments from the founder and his team. This forecast is really their commitment. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Cash flow is king.

Forecast 151

Forecast Startup Burn Rate .Net 151

Both Sides of the Table

MARCH 30, 2016

Investors sat with the founder & CEO, Jason Spievak, and asked him what he wanted to do about the future. Invoca was raising at the tail end of this market phenomenon at this time doing tens of millions in SaaS recurring revenue and growing at a nice clip. CMRR (contracted monthly recurring revenue) grow 100% y/y.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Up and Running

MAY 22, 2018

For any startup founder pitching their idea to investors, landing the deal is never a guarantee. In this article, I will share how founders can blow investors’ minds by basing their pitch on four strong pillars that are not only essential to make an impact but also to make you understand what is expected out of your business idea.

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. You’ll see here that in 2007 people were willing to pay 7.7x

Valuation 150

Valuation Down Round Startup Later Stage 150