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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 In this situation I think we should be increasing burn rate and not immediately focusing on revenue [I do sometimes believe this]. If we do that and you lower your burn rate then you’ll have more time to prove things out before we fund raise.

Burn Rate 412
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How much does it cost to build the world’s hottest startups?

The Next Web

Considering Facebook’s scale, the company is now in the business of operating power plants to operate its servers, therefore, Schippers estimates that Facebook has a $30 million dollar monthly burn rate just for hosting. Suddenly, those multi-million dollar financing rounds that startups raise don’t seem so outrageous! 4) WhatsApp.

Cost 168
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No Accounting For Startups

Steve Blank

For example, at a minimum, a web based startup needs to understand the Customer Lifecycle, Customer Acquisition Cost, Marketing Cost, Viral Coefficient, Customer Lifetime Value, etc. Viral Acquisition Ratio. Dave McClure’s AARRR Model is one illustration of the web sales pipeline. Paying/(Activations + Retained 30+). Financials.

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Startup Benchmarks

VC Cafe

In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. The main B2C benchmarks have to do with traction: growth in user acquisition, user retention/churn, monetisation, as well as the effectiveness of consumer marketing + virality. Consumer apps and services.

B2C 141
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Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

The game has started getting some traction already, and has a good virality index. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely. Then Jeff Bogensberger pitched SOCO Games , the maker of a Facebook game called Earth 2.0.

Dilution 114
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Out of the Crisis #13: Alpha Lee on remembering the 2003 SARS epidemic and his opensource COVID-19 Moonshot

Startup Lessons Learned

When the main proteinase gets inhibited, the viral replication becomes difficult, and the virus would therefore die. The current burn rate wouldn't last us very long, and we are committing all our resources now because we think that we don't do it now, we don't do it ever. Alpha Lee : The main proteinase.

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Lessons Learned: Don't launch

Startup Lessons Learned

If the viral coefficient is 0.9, And even worse, wed cranked up the burn rate in order to be ready to handle all those millions of mainstream customers we anticipated. Pay attention to your fundamental driver of growth. keep iterating until its 1.1 before you launch.