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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

A version of this article first appeared in the Harvard Business Review. It’s the antithesis of the Lean Startup. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. The Rise of the Lean Startup.

Lean 335
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Why More Funding Won’t Magically Fix Your Startup

Mucker Lab

Compass.co, a benchmarking and research service, analyzed 3,200 internet startups and found that 74 percent “fail due to premature scaling.” 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.

Startup 78
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Are Business Plans Still Necessary?

Both Sides of the Table

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. Usually in a tech / software startup 70-80% of your costs will be people. Each quarter you should review your model. Too aggressive about the rate of customer adoption?

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Twitter Link Roundup #235 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Inside the Mind of a Technical Founder | OpenView Blog by Larry Kim – crowdspring.co/1u7Fz1b. Are startup burn rates out of control? Busting the Lean-Startup Myth – crowdspring.co/1ozOXHA. Livescribe Notebooks by Moleskine marry analog and digital technology – crowdspring.co/1lYTFTX. 1uDRBAT.

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

Feld Thoughts

One of them used to be a lead developer at [insert hot consumer tech company here]. They need to raise money before building anything substantial after determining that they needed a little dough to follow the Lean Startup methodology. In startup time, that feels like forever. The year would have been a full year, not just 7-9 months.

Burn Rate 152
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The Customer Development Manifesto: The Startup Death Spiral (part.

Steve Blank

Finally, I’ll write about how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agile development. The new VP of Sales reviews the sales strategy and tactics that did not work and comes up with a new sales plan.