Both Sides of the Table

SEPTEMBER 28, 2014

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. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Startup Lessons'

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 18, 2014

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? There are a million ways to do quick, easy, low-cost rounds with prices. “But lawyers will charge much more for equity.” Try doing THAT with equity.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

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? There are a million ways to do quick, easy, low-cost rounds with prices. But lawyers will charge much more for equity.” Try doing THAT with equity. Me: More dilution?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153