Remove Conversion Remove Down Round Remove Equity Remove IP
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. So money spent should add equity value or create IP that eventually will. Would they be willing to put a bridge loan in place if need be?

Burn Rate 383
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Bad Notes on Venture Capital

Both Sides of the Table

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? These are all real conversations. What if when you have that conversation you don’t agree? “But lawyers will charge much more for equity.” And so forth.

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Bad Notes on VC

Gust

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? These are all real conversations. What if when you have that conversation you don’t agree? But lawyers will charge much more for equity.” Try doing THAT with equity.