Both Sides of the Table

SEPTEMBER 28, 2014

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

MAY 28, 2018

Founder: “$8–10 million” VC: “What’s your current burn rate?” VC: “So at a constant rate of burn rate you’d be raising enough for 2.5–3 He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Founder: “$250k / month.”

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Up and Running

APRIL 22, 2020

This does not mean that you need 2-3 years’ worth of documents showcasing your revenue and cost of goods sold, but you’ll likely need reports that show at least 12-months of financial activity. Many startups are small, local businesses with hopes of eventually rapidly scaling—but they’re still establishing a track record.

SBA 139

SBA Forecast Software Review Business Plan 139

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

View from Seed

OCTOBER 15, 2014

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. The seed stage is all about traction. Section 6: Current Priorities/Discussion.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

BeyondVC

JUNE 11, 2007

Sure, while some of these venture debt firms recognize that web-based businesses may not have as much hard and true intellectual property, the fact that they are more capital efficient and can scale more rapidly means they can also generate pretty nice returns from the warrant portion of their deal. Why can raising venture debt be great?

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

dondodge.typepad.com

JANUARY 15, 2011

They often take a convertible note too, but with warrants for additional shares or a discount on Series A shares. My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. Angels will usually invest between $300K and $2M. Most startups fail.

Equity 40

Equity Employee Dilution Valuation 40