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'
Both Sides of the Table
JANUARY 21, 2010
Shame about not getting it in legal writing that you owned the original IP. For a very small fee they can get your Delaware C corp registration, make sure that you have IP protection and ensure you didn’t make an early bumbling mistakes that you’ll pay for dearly in the next 7-10 years of hard work.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Both Sides of the Table
SEPTEMBER 25, 2010
People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot. The reason I have generally been against convertible debt is that historically it was a mechanism that avoided price. and not a min.
Both Sides of the Table
JANUARY 5, 2010
If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? I’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”. Why should I be? I finally called bullshit.
David Teten
JANUARY 19, 2021
That said, nothing is cost-free. More complex cost of capital calculation. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Transaction costs. Legal costs typically $5K-$50K . Cost of capital.
Both Sides of the Table
SEPTEMBER 18, 2014
There are a million ways to do quick, easy, low-cost rounds with prices. If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase.
Austin Startup
AUGUST 20, 2017
Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Can you acquire them at a sustainable cost? Is there a development step that you must take to fulfill demand for a particular use case, and, if so, how does that cost get absorbed? Are the logistics manageable?
Expert insights. Personalized for you.
383 
Let's personalize your content