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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. 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.”

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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left.

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Account-Based Marketing vs. Lead Generation: Which is Right for You?

ConversionXL

It’s proven to drive more revenue , improve customer experience , and power growth. Without marketing attracting the right accounts, there are no hot leads for sales to have meaningful conversations with. And when you’re having a conversation, you might even be in a power position.”. Strategic importance of clients.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

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Critical Patent Strategies Startups Can Use From Large Companies

Up and Running

A wiser strategy—especially for key revenue-potential products—includes a portfolio of patents protecting the product’s various unique functionalities and component parts. Proper alignment between the patent portfolio and revenue is financially savvy. Securing the essential European hubs, (i.e.,

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5 Best Indicators That It’s Time to Scale Your Business

Up and Running

If the money isn’t there or the workload doesn’t warrant bringing in new employees, you should reconsider scaling. . Some of these numbers include revenue over a set period of time. What are future revenue growth projections indicating? Regardless of the size of your business, there is a right and wrong time to scale.