Steve Blank
APRIL 26, 2022
At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. You just failed the ethical choice and forever ruined your reputation. This article previously appeared in TechCrunch. Cram downs are back – and I’m keeping a list.
Tim Keane
DECEMBER 14, 2009
One of the dangers of taking investment from individual angels, rather than through an angel group or investment firm, is that they have less reputation to protect. A low burn rate is a pearl of great price. It provides lots of options that high burn rates take away.
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Both Sides of the Table
JULY 13, 2013
And for every time I’ve felt hugely stressed that our burn rate was getting too high, and I didn’t know who else was going to fund the company, and I’m all in on this company, right?” ” And I’m all in on the company, and they’re doing well. By the way, I’ve seen that a lot.
Both Sides of the Table
MARCH 9, 2013
Should you increase your burn rate by adding 2 senior hires who will help you ship faster or sell more but then have less time for fund raising? I believe in people who are willing to put their reputation on the line and willing to be wrong. Or maybe their existence itself will help accelerate fund raising. .”
Steve Blank
AUGUST 27, 2012
Other weeks Yuri would be buffeted by the realities of his burn rate, declining bank account and depressing comments from customers. The company already was gaining a reputation as one without a coherent strategy. Some of the engineers figuring if the founder was declaring they were toast in 90 days were updating their resumes.
Professor VC
NOVEMBER 19, 2009
If you have a reputation for cutting corners, not treating employees or partners right, it will become very difficult to do business. If you are not transparent with your investors, you won't raise money the second time around, regardless of whether you were successful or not successful the first time. Can Entrepreneurship Be Taught?
abovethecrowd.com
APRIL 20, 2016
The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. They didn’t call you before when they built their reputation.
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