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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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
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How The IBM PC Made Me Appreciate Entrepreneurs

Startup Professionals Musings

For IBM, the Personal Computer was a paradigm shift from their big business legacy, built with new technologies for totally new markets, and battleships turn very slowly. The culture of a large technology company is to rely on internal development or large, stable, and proven external vendors.

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Startup Benchmarks

VC Cafe

When you start with an honest and diligent effort to determine the truth of your situation, the right decisions often become self-evident.” — Jim Collins , author of Good to Great. In this post I’ll focus on benchmarking resources for seed and series A in the following three categories: SaaS B2C / Consumer apps Deep tech.

B2C 141
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Are Business Plans Still Necessary?

Both Sides of the Table

That died with waterfall software development. If you’re a consumer destination the revenue and COGS lines should tell me about how big your funnel is, how you fill the top end of the pipe and what your conversion rates will be. Ditto for enterprise software companies. Each quarter you should review your model.

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These Innocent Hiring Mistakes Can Kill Your Startup

Transformify

Their investors may push them into that direction too, as the high burn rate is often seen as a prerequisite for high growth. You don’t have the right people on board, you are burning cash and the work is not done, at its worst, your product is already live and you are losing clients due to software bugs and poor user experience.

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Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

His most recent company, Filtrbox, participated in the inaugural Techstars class (Techstars Boulder 2007) and was a win for all parties involved; Filtrbox was acquired in 2010 by Jive Software (NASDAQ: JIVE). One of them used to be a lead developer at [insert hot consumer tech company here]. In startup time, that feels like forever.

Burn Rate 152
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Twitter Link Roundup #235 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

The Myth of Venture Capital | Re/code by Jon Oringer – crowdspring.co/1tNFeV7. Inside the Mind of a Technical Founder | OpenView Blog by Larry Kim – crowdspring.co/1u7Fz1b. Are startup burn rates out of control? Livescribe Notebooks by Moleskine marry analog and digital technology – crowdspring.co/1lYTFTX.