Both Sides of the Table
SEPTEMBER 28, 2014
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.
Steve Blank
SEPTEMBER 5, 2018
A version of this article first appeared in the Harvard Business Review. 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. Then the cycle repeats with a new set of technologies. Then one day it was over.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Steve Blank
FEBRUARY 11, 2010
After I retired I would get calls from VC’s to help with “marketing problems” in their portfolio companies. The phone call would sound something like: “We have a company with great technology and a hot product but at the last board meeting we determined that they have a marketing problem. Six is a Proxy for Burn Rate.
Both Sides of the Table
NOVEMBER 3, 2009
portfolios. 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? You might then slow down your burn rate or raise more money. Cisco and others went out to fill out their Web 2.0
David Teten
NOVEMBER 26, 2019
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. Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate.
Professor VC
SEPTEMBER 26, 2011
Dan Frommer, in Moneyball for tech startups , interviewed Fred Wilson, Chris Dixon, Paul Graham and Ben Horowitz on the topic. And given that four of the most important tech investors in the world seem skeptical of it, if someone can figure out a good formula that works, they may be able to exploit it". How Much Diligence is Due.
Professor VC
APRIL 7, 2011
Technically, the start-up is insolvent from the day they take the first dollar of investment. However, using portfolio theory, your losers are going to far outnumber your winners, so taking half or more of the gains out of the winners will have a big impact on the overall returns. How Much Diligence is Due. ► May.
Expert insights. Personalized for you.
383 
Let's personalize your content