Remove Burn Rate Remove Internet Remove Operations Remove Seed Money
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Should Startups Care About Profitability?

Both Sides of the Table

They don’t want high burn rates but they will never fund slow growth. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). They both raised angel / seed money of $1.5 The example chart is not actually atypical.

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Figuring Out FourSquare

Seeing Both Sides

Modest burn : the company only raised $1.35 million in its series A financing and kept the burn rate at less than $100k per month to make he money last. Dennis wrote a great post at the time of the financing that showed just how product obsessed he was, even after taking the seed money. Monetization.

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