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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Your goal is to invest in engineering (to maintain your product lead), new offices / locations (to capture markets before others), marketing (to capture consumer attention before others do) … all of these activities consume cash often in advance of the revenue they generate. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Flexible VC offers you this. Board seat, typically retained until company exit.