article thumbnail

8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate? Look for examples of similar companies and revenue multiples achieved from acquirers.

article thumbnail

8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate? Look for examples of similar companies and revenue multiples achieved from acquirers.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Validate The Pedigree Of A Startup Before You Jump

Startup Professionals Musings

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate? Look for examples of similar companies and revenue multiples achieved from acquirers.

article thumbnail

8 Questions Before You Join Or Invest In A Startup

Startup Professionals Musings

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate? Look for examples of similar companies and revenue multiples achieved from acquirers.

article thumbnail

Why You Need to Ring the Freaking Cash Register

Both Sides of the Table

The company with no revenue and a $150k burn rate that raised $2.5 I often wonder why they didn’t find a way to bring in some revenue to cover costs. Newsflash – if you had $75k revenue / month you’d have 8 months cash left in stead of 4. I see this weekly. million and has 4 months cash left.

Burn Rate 412
article thumbnail

Dear elizy: How much should I pay myself at my startup?

Hippoland

Your equity stake If you’re a “founder” brought into a startup a bit later and are given say 5% of the company (on a vesting schedule), this is very different from being an “original founder” who likely owned 25-50% of the business starting out. On the flip side, you may be generating some revenues to offset costs.

article thumbnail

How to Fund a Startup

www.paulgraham.com

There never has to be atime when you have no revenues. Another difference with large investments is that the founders areusually required to accept "vesting"—to surrender their stock andearn it back over the next 4-5 years. vesting would in that situation force founders to toe the line. At Viaweb we managed to raise $2.5