ReadWriteStart

APRIL 26, 2011

It's still not the accepted or the obvious choice for funding your startup, however. But news that the Austin, Texas-based MicroVentures has successfully raised its first $150,000 for three startups via its crowdfunding platform suggests that these alternatives might be viable after all. Discuss.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

Both Sides of the Table

OCTOBER 12, 2010

If you’re interested in recruiting sales people, I wrote on the topic of startup sales people: who to hire & when – understanding the roles of Journeymen, Mavericks & Superstars. Evangelical sales – Understanding startup sales people and process. Reminds me of Eats, Shoots & Leaves. You learn by asking.

Hiring 346

Hiring Sales Startup Early Stage 346

Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

Up and Running

APRIL 27, 2020

Current businesses are finding ways to pivot their business models, revisiting their budgets, and developing new forecasts to minimize their burn rate and maximize their available cash runway. One thing that doesn’t typically end during a financial crisis, is investors looking to fund startups and small businesses.

Software Review 113

Software Review Lean Forecast Business Plan 113

Startup Professionals Musings

DECEMBER 11, 2017

Calculate cash-burn rate and investment timing. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Financial forecasts for startups are assumed to be estimates that will be updated as more information is known.

Burn Rate 144

Burn Rate Forecast Angel Investor Revenue 144

Up and Running

OCTOBER 7, 2019

However, as a founder of a small business or startup, you’re juggling many things. While the right metrics will depend on your business objectives and specific circumstances, there are some basic KPIs you should keep an eye on: Startup KPIs. Customer churn rate: shows the percentage of customers lost in a given period (e.g.,

Founder 71

Founder Retention Metrics Technical Review 71

Startup Professionals Musings

JULY 15, 2013

Using your data, here are the basic elements of the projection process, which are measurable by milestones, and can be tracked to show when a re-forecast is required: Start with sizing per-unit profitability. This forecast is really their commitment. Plan to re-forecast every quarter. Margin is everything. Cash flow is king.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

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

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

Up and Running

SEPTEMBER 17, 2014

Cash is the life-blood of any startup, and you should always have a pulse on how much of it you have left and how long it’s going to last. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations. Here’s what they had to say: 1. Cash on Hand.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

Startup Professionals Musings

AUGUST 7, 2015

Your customers don’t care if you are targeting a billion-dollar market and growing at double-digit rates, but investors will skip small or shrinking opportunities. Large and growing markets imply a high startup growth potential, with high odds of scaling and success. First to market” is not sustainable by a startup.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

ithacaVC

OCTOBER 29, 2011

This post covers cash forecasts and financial projections. As Brad points out, most startups start with a cash forecast to track expenses because it takes a bit of time to figure out how to best project revenues (the top line of the financial projections). Even for a recovering lawyer (me), it is common sense.

Revenue 49

Revenue Finance Burn Rate Forecast 49

Startup Professionals Musings

MARCH 22, 2011

Using your data, here are the basic elements of the projection process, which are measurable by milestones, and can be tracked to show when a re-forecast is required: Start with sizing per-unit profitability. This forecast is really their commitment. Plan to re-forecast every quarter. Margin is everything. Cash flow is king.

Forecast 230

Forecast Burn Rate Startup .Net 230

Up and Running

AUGUST 21, 2014

One of the most important things a startup can do is make sure that they are keeping track of their data. In this webinar, we take time to discuss the different metrics that startups—and established businesses—should be tracking. As you start to sell, are you above your forecasted pace, are you below it? Sabrina: Great.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Startup Professionals Musings

JUNE 9, 2012

Using your data, here are the basic elements of the projection process, which are measurable by milestones, and can be tracked to show when a re-forecast is required: Start with sizing per-unit profitability. This forecast is really their commitment. Plan to re-forecast every quarter. Margin is everything. Cash flow is king.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Up and Running

OCTOBER 1, 2014

To complicate things further, your startup is also frequently a side hustle while you hold down a day job. Nelson has some tips: Know your burn rate. And this isn’t just for your business, but as many startup founders know, your personal finances can matter just as much (especially if you aren’t profitable yet).

Bootstrapping 107

Bootstrapping Cofounder Portland Burn Rate 107

Startup Professionals Musings

MARCH 25, 2010

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. Projecting, tracking, and controlling cash flow is the single most important job of the CEO and all other startup officers. Next comes sales volume by channel.

Forecast 151

Forecast Startup Burn Rate .Net 151

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. ” “Mark has a vested interest in talking down valuations of startups.” In 2015 in the US there were $77 billion written into startup tech companies.

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

MARCH 30, 2016

If you want to see what was on my mind – I started foreshadowing change publicly in October 2015 with a forecast of what I expected in 2016 VC funding markets at a presentation I gave at the annual Cendana VC/LP conference hosted by Michael Kim. Some startups will have a hard time reorienting. Total customers grew 20% year/year.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Early Growth Financial Services

JANUARY 10, 2013

Of utmost concern to many entrepreneurs is how to retain maximum equity in their startups. In my opinion, the best strategy for retaining maximum equity in your startup is to do milestone raises. Rightly so. It’s a constant balancing act: growing your company without losing control of it. Milestone raises. Milestone raises.

Equity 38

Equity Dilution Bootstrapping Startup 38

Up and Running

MAY 22, 2018

For any startup founder pitching their idea to investors, landing the deal is never a guarantee. Demonstrating to investors that you have a handle on key business metrics as they relate to your business model and forecast is essential. Nerdy term: Burn rate. So, what are they doing wrong?

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90