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Is the Lean Startup Dead?

Steve Blank

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. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. Then one day it was over. IPOs dried up.

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Twitter Link Roundup #240 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Benchmarking SaaS Startup Efficiency with Revenue per Employee Metrics | by @ttunguz – crowdspring.co/1sRVdjm. What is the Right Burn Rate at a Startup Company? | How to Ruin Your Company with One Bad Process | by @bhorowitz – crowdspring.co/11FYS9R. by @msuster – crowdspring.co/1qKWc0z.

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Twitter Link Roundup #238 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Refocusing the Startup Burn Rate Debate | OpenView Blog – crowdspring.co/1n8paLq. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. React – crowdspring.co/1yHa1WB.

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These Innocent Hiring Mistakes Can Kill Your Startup

Transformify

Their investors may push them into that direction too, as the high burn rate is often seen as a prerequisite for high growth. You don’t have the right people on board, you are burning cash and the work is not done, at its worst, your product is already live and you are losing clients due to software bugs and poor user experience.

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Lessons Learned: Cash is not king

Startup Lessons Learned

The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). The key is to be able to refute as many major hypotheses as you can.

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25 Best Startup Failure Post-Mortems of All Time

www.chubbybrain.com

spent $20 million to get back to the same revenue that I had when I was CEO. created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. .”). Too much PR, too early. During this year they. Too much money.