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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. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383
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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. Of the Inc. 5000 companies, only 6.5% raised from angels.

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Your need for a board grows with complexity.

Berkonomics

The operations of the corporation become more complex. Bank loans with restrictive covenants are taken on. I engineered the extraction of the outside investors, even at a near total loss. Then along comes either money or contracts from strategic or financial investors or partners. The number of employees grows.

article thumbnail

The need for a board grows with complexity

Berkonomics

The operations of the corporation become more complex. Bank loans with restrictive covenants are taken on. I engineered the extraction of the outside investors, even at a near total loss. Then along comes either money or contracts from strategic or financial investors or partners. The number of employees grows.