Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

ReadWriteStart

JANUARY 27, 2011

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely. million in revenue.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Feld Thoughts

SEPTEMBER 9, 2015

” The word showed up again in Nick Bilton’s Vanity Fair article Is Silicon Valley in Another Bubble. Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.” I once was on the board of a company that had generated lifetime revenue of $1.5m

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Both Sides of the Table

JULY 13, 2013

There was one in Silicon Valley, unsurprising, one in Chicago, and there was this group out of the south of France that served all of Europe. You have been at five startups, you had an exit at your last company where you were the Chief Revenue Officer. He wants to retain the CEO title.”

Cofounder 337

Cofounder Technical Cofounder Startup San Diego 337

Startup Professionals Musings

NOVEMBER 7, 2016

Compensation and support carried the corporate burden rate. The burn rate was extremely high, with no one working for equity or deferred compensation. In enterprises, performance objectives are usually tied to internal processes, rather than beating competitors, customer acquisition, and revenue growth.

Technical Review 214

Technical Review Entrepreneur Silicon Valley Burn Rate 214

Steve Blank

NOVEMBER 2, 2009

And I can even imagine cases where it might burn more cash than a traditional startup. The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. Lets see why.

Lean 244

Lean Silicon Valley Startup RSS 244

Professor VC

JULY 31, 2008

The last blogger in Silicon Valley. The artists received very little of album sales, but kept concert and merchandise revenue. The artists received very little of album sales, but kept concert and merchandise revenue. The artists had very few sales of albums, but gave a concert and commodity revenue. ProfessorVC.

San Jose 28

San Jose Software Review Angel Investor Silicon Valley 28

Professor VC

AUGUST 26, 2011

The last blogger in Silicon Valley. To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. I often do this in the revenue tab. ProfessorVC. ► October. (1).

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

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 typical Silicon Valley term sheet does not include such terms.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Professor VC

JULY 2, 2010

The last blogger in Silicon Valley. Andy argues against common wisdom here in Silicon Valley that start-ups are behind all new job creation. Friday, July 2, 2010. Do you have a U.S. Seems like an appropriate question to ask as we enter the 4th of July Holiday weekend. Can Entrepreneurship Be Taught? ► October. (1).

San Jose 28

San Jose Silicon Valley Venture Capital Angel Investor 28

Professor VC

JUNE 20, 2011

The last blogger in Silicon Valley. But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). ProfessorVC. Monday, June 20, 2011. How much is enough? Financing, that is.I Can Entrepreneurship Be Taught? ► October. (1).

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Both Sides of the Table

FEBRUARY 14, 2016

Back then Michael Arrington accused some of Silicon Valley’s top seed funds of “colluding” by meeting secretly to talk down the valuation of startups. Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. This is the biggest red herring of them all.

Valuation 150

Valuation Down Round Startup Later Stage 150

www.chubbybrain.com

SEPTEMBER 28, 2011

spent $20 million to get back to the same revenue that I had when I was CEO. created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. .”). Title: Burn Rate: How I Survived the Gold Rush Years on the Internet.

Software Review 79

Software Review Startup Technical Review Vesting 79

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. Companies raised too much money in 2005-08 and had high burn rates. When I first got into the industry it was 2007. Valuations were enormous relative to progress in companies. was still a term being bandied about.

Stock 305

Stock Technical Review Marketing Greece 305