crowdSPRING Blog

OCTOBER 24, 2014

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Benchmarking SaaS Startup Efficiency with Revenue per Employee Metrics | by @ttunguz – crowdspring.co/1sRVdjm. What is the Right Burn Rate at a Startup Company? |

Social Media 95

Social Media Small Business Design Media 95

crowdSPRING Blog

OCTOBER 10, 2014

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Refocusing the Startup Burn Rate Debate | OpenView Blog – crowdspring.co/1n8paLq. Web Design Trend Showcase: Splash Screen Revival – crowdspring.co/1pttgcA.

Social Media 97

Social Media Small Business Design Media 97

Steve Blank

SEPTEMBER 7, 2009

To support sales, Marketing tries to “make up a better story,” and the web site and/or product presentation slides start changing (sometimes weekly or even daily). Instead of a Sales team and organized to sell with a consistent and successful sales roadmap generating revenue, it is a disorganized and unhappy organization burning lots of cash.

Customer Development 224

Customer Development Developer Customer Silicon Valley 224

Steve Blank

NOVEMBER 18, 2010

For decades startups were managed by pretending the company would follow a predictable path (revenue plan, scale, etc.) The Revenue Plan – The Third Fatal Assumption. Notice that the traditional product introduction model leads to a product launch and the execution of a revenue plan. Albert Einstein. Ritualized Crises.

Burn Rate 247

Burn Rate Management Business Model Customer Development 247

Steve Blank

FEBRUARY 22, 2010

I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. An early indication that you’ve found the right business model is when you believe the cost of getting customers will be less than the revenues the customers will generate. Web Metrics.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Startup Professionals Musings

JULY 27, 2014

Now you can do it for free, or a few hundred dollars, with one of the many web building tools available, like Shopify or Weebly Store. With a little help from a friend, you can handle expenses, revenue, and payroll, with QuickBooks or a similar package. These steps alone can reduce your monthly burn rate by at least $10K.

Entrepreneur 260

Entrepreneur Burn Rate Social Media LLC 260

joel.is

MARCH 8, 2011

Lessons shared by Joel Gascoigne , a fledgling entrepreneur and contract web developer currently based in Birmingham, UK. You can work out your expected burn rate before you jump into the wave, so you know when you’re going to run out of funds. This gives you a significant amount of pressure to deliver during the wave.

Bootstrapping 41

Bootstrapping Burn Rate Startup Web Development 41

Startup Professionals Musings

JUNE 18, 2012

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Try Web-Ex, free teleconferencing, and Skype instead of international travel for client meetings.

Cost 255

Cost Burn Rate SEM Startup 255

Startup Professionals Musings

FEBRUARY 15, 2011

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Try Web-Ex, free teleconferencing, and Skype instead of international travel for client meetings.

Entrepreneur 235

Entrepreneur Burn Rate SEM Social Network 235

The Next Web

MARCH 8, 2014

In fact, I’ve learned that being a partner at a $150m Venture Fund (more or less my new job) is quite similar to what it is like being CEO of a start-up with a $250,000 monthly burn rate. Specifically, it feels eerily similar to how I felt when I was CEO at EchoSign when we were at about $4m in revenue.

Partner 138

Partner Burn Rate Early Stage IPO 138

This is going to be BIG.

MARCH 1, 2010

If they *all* turn you down, then I strongly advocate that you either try to get revenues to prove them wrong, bootstrap user traction, spend your own cash, go with friends/family, or maybe, just maybe, take another look at your model. Should they work on your “real time” web startup or write code that processes a million trades a minute?

New York City 113

New York City New York Startup Burn Rate 113

Gust

JUNE 10, 2012

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Try Web-Ex, free teleconferencing, and Skype instead of international travel for client meetings.

Cost 139

Cost Burn Rate SEM Startup 139

Startup Professionals Musings

FEBRUARY 13, 2010

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Try Web-Ex, free teleconferencing, and Skype instead of international travel for client meetings.

Burn Rate 125

Burn Rate SEM Social Network Angel Investor 125

The Next Web

JUNE 15, 2015

Take Airbnb’s expansion into Europe as an example, a market that now generates over half of the company’s revenue. Airbnb’s experience shows how local engagement strategies such as these do not have to increase a startup’s burn rate considerably. Then a further 15-20 percent should be added to this amount.

Global 60

Global Burn Rate Startup CPA 60

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

Hearpreneur

JULY 7, 2019

Over the next 10 years, entrepreneurship will reach a peak of new startups, increasing the burn rate of founders and the failure rate for new ecosystems. More and more entrepreneurial ventures will be web-based business, bringing together teams globally. Thanks to Lorrie Thomas Ross, Web Marketing Therapy® ! #12-Building

Entrepreneur 93

Entrepreneur Distribution Employee Arizona 93

BeyondVC

JUNE 11, 2007

We all know the story – it is incredibly cheaper to start a web-based business versus 5 years ago with the rise of open source software and commodity servers. The interest in web-based businesses is there and the competitive market means that pricing and terms are pretty attractive now.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

Startup Lessons Learned

MARCH 27, 2009

The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). And, of course, theres the Lean Startup session at the upcoming Web 2.0

San Francisco 117

San Francisco Lean Continuous Deployment DC 117

Up and Running

AUGUST 21, 2014

The other thing that they’re going to ask you is average revenue per account or per user or per customer. You need to understand how much money is brought in by each individual account or user when looking at the overall revenue. It’s what’s going to make you most attractive to an investor. If we increase our-.

Metrics 84

Metrics Startup Churn Rate Forecast 84

dondodge.typepad.com

JANUARY 15, 2011

My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. from David Dalka - Creating Revenue and Retention - Chicago GSB MBA As discussed in my recent post about a TiE event on Chicago start ups, there are many factors to consider when taking in funding and employees.

Equity 40

Equity Employee Dilution Valuation 40

abovethecrowd.com

FEBRUARY 24, 2015

As a result, a “late-stage” financing is no longer reserved for high-revenue, pre-profitability companies getting ready for an IPO; it is simply any large round of financing done at a high price. You must subtract it from your top-line revenue. You should not pay a net revenue multiple for a gross revenue disclosure.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

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. .”). Post-Mortem Title : Lessons from Kiko, web 2.0 During this year they.

Software Review 79

Software Review Startup Technical Review Vesting 79

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. If you get a call from a VCfirm, go to their web site and check whether the person you talkedto is a partner. Odds are it will be a junior person; they scourthe web looking for startups their bosses could invest in.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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. And not a pleasant one. When I first got into the industry it was 2007. Valuations were enormous relative to progress in companies. tl;dr summary.

Stock 305

Stock Technical Review Marketing Greece 305

VC Cafe

JULY 6, 2010

How are you planning ramp up the revenue? Also, the nice thing about these revenue streams is that they actually help the Libox user. Our burn rate is very low and the technology is very scalable. We will add public web sharing and then the regular privacy practices will apply. We want to change that.

Media 84

Media Management API HTML 84