Burn Rate Pre-Money Valuation Revenue Technical Review 
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.
Both Sides of the Table
SEPTEMBER 29, 2009
Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.
www.paulgraham.com
APRIL 28, 2010
I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. There never has to be atime when you have no revenues. The contacts and advice can be more important than the money. Whendel.icio.us
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