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.
Both Sides of the Table
JULY 13, 2013
You have been at five startups, you had an exit at your last company where you were the Chief Revenue Officer. 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?”
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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.
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. The same thing happened to many Internet stocks.
www.paulgraham.com
APRIL 28, 2010
There never has to be atime when you have no revenues. One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect. 5 ] Another danger of less known firms is that, like angels, they haveless reputation to protect.
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