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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross burn is the total amount of money you are spending per month. Net burn is the amount of money you are losing per month. 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. Startup Lessons'

Burn Rate 383
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Taking it from an investor perspective (not me, angels) I think it’s totally unfair to see early angels invest, take more risk, help you get to the next level through both sweat & money, and then pay a higher price because the round had a convertible note with no cap. That’s OK, but it gives you a max (read: price!)

Finance 286
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What is it Like to Negotiate a VC Round?

Both Sides of the Table

In the old days VCs funded off of a “pre-moneyvaluation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. Those are the big three. Size of my check.

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Bad Notes on Venture Capital

Both Sides of the Table

If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. There are a million ways to do quick, easy, low-cost rounds with prices. Him: Not so good. Employment.

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Bad Notes on VC

Gust

If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. There are a million ways to do quick, easy, low-cost rounds with prices. Him: Not so good. Employment.