Both Sides of the Table
FEBRUARY 15, 2016
This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?”
Both Sides of the Table
MAY 28, 2018
It goes something like this … VC: “How much money are you raising?” Founder: “$8–10 million” VC: “What’s your current burn rate?” VC: “So at a constant rate of burn rate you’d be raising enough for 2.5–3 In the normal case you’d be running out of cash after 16 months or just one year after you raise money.
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Both Sides of the Table
SEPTEMBER 29, 2009
High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.
Both Sides of the Table
FEBRUARY 4, 2016
The result of all of this new money? Median pre-money valuations skyrocketed – shooting up 3x in just three years as investors competed to christen imaginary animals with imaginary valuations. ” How seriously is the “lower your burn message?”
Professor VC
JANUARY 17, 2008
Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. Can Entrepreneurship Be Taught? ► October.
www.paulgraham.com
APRIL 28, 2010
The friends might have liked to have more money in this first phase,but being slightly underfunded teaches them an important lesson.For a startup, cheapness is power. Here are the terms: a $2 millioninvestment at a pre-money valuation of $4 million, meaning thatafter the deal closes the VCs will own a third of the company (2 /(4 + 2)).
thestartuplawyer.com
FEBRUARY 24, 2010
Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder.
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