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Which Fundraising Round Should You Skip?

View from Seed

As a first time founder, having a few million dollars in the bank after a successful seed raise may seem like a huge amount of capital, and it’s easy to lose discipline around your burn rate.

Dilution 149
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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. Activation rate: measures how many visitors are engaging with your website or app.

Founder 71
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How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

They can show the projections on what this does to burn rate. Stock option top-ups after a few years are vital retention mechanisms. They can help you understand gross margins and how to avoid signing bad deals. They can help you with pricing. Another thing entrepreneurs f**k up? Timing of cash payments.

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Why Startups Love The One-Two Of Engaging, Affordable Quiz Marketing

YoungUpstarts

Startups are regarded for their embrace of industry disruption, all the while constantly trying to limit their burn rate and conserving their capital for future growth. The push-pull of entertainment and engagement is a subtle balance, but one which works wonders for audience retention when done right. Marketing: startup style.

Marketing 147
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An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. However, these are important updates for your board to know. You should also include a 1-2 sentence description of what’s happening.

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Startup Benchmarks

VC Cafe

In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. The main B2C benchmarks have to do with traction: growth in user acquisition, user retention/churn, monetisation, as well as the effectiveness of consumer marketing + virality. Consumer apps and services.

B2C 141
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Is the Lean Startup concept of MVP dead?

VC Cafe

In fact, they were screaming at them to dramatically reduce their burn rates. The fundamentals (unit economics/ margins, CAC>LTV, the importance of retention) are more important now. Angel investment, which was small to start with, disappeared, and most corporate VCs shut down. It was a nuclear winter for startup capital.”

Lean 214