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

They want to understand your burn rate and cash runway to see how likely you are to pay back the loan, and in a crisis, a hit in sales, revenue, and overall cash flow can help prove that you were affected by COVID-19. Incomplete application or missing documents.

SBA 139

SBA Forecast Software Review Business Plan 139

Both Sides of the Table

MAY 23, 2010

the loan converts at 15-20% discout to the new money coming in) or your investor will get “warrant coverage&# which is similar to an employee stock option in that it gives the investor the right but not the obligation to invest in your company in the future at a defined priced. “Honestly, [name], I wouldn’t take the money.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

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. And don’t be shy about stating any requests for help.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

ReadWriteStart

JANUARY 27, 2011

And a few words about Persistent Systems, an outsourced software product development (OPD) company that is navigating its next phase of evolution are also warranted. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

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