Steve Blank

SEPTEMBER 5, 2018

Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. These bubble startups were actually guessing at their business model and did premature and aggressive hype and early company launches and had extremely high burn rates – all predicated on an IPO to raise more cash.

Lean 335

Lean Burn Rate Startup IPO 335

David Teten

NOVEMBER 26, 2019

I encourage entrepreneurs to correct course with a re-forecast early and often. So here’s the solution I have recommended to some of my portfolio companies: “ agile budgeting ”, i.e., monitoring a few key variables while giving managers significant flexibility. Instead, managing to a rolling forecast/budget is much better.

Agile 60

Agile Management Forecast Silicon Valley 60

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? Others will follow.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Both Sides of the Table

MARCH 30, 2016

They either had a portfolio company in market and weren’t getting offers as quickly as expected or they knew a friend in the biz who was recounting this to them in a session VCs strangely call “comparing notes.”. Here are some stats to give you a sense: • Year over year revenue grew 51% in 2015 and we’re forecasting the same again for 2016.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

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. Most are sitting on large portfolios of private companies that are raising money now or will need to do so in the future and they know that they’re up against some headwinds.

Valuation 150

Valuation Down Round Startup Later Stage 150