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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. In other words, raising $2 million at a $6 million pre-money valuation has always been easier & quicker than raising $20 million at any valuation.

Burn Rate 150
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Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

With a 15% churn rate, that suggests about $7 in lifetime value. Interestingly, this new deal actually lowered the pre money valuation for the company. 75,000 for 10% implies a $675,000 pre money valuation. 150,00 for 20% implies a $600,000 pre money valuation.