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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So money spent should add equity value or create IP that eventually will. Simply put – down rounds are very hard to achieve psychologically because insiders fight against them (rightly or wrongly) and outsiders have a mental gap that if your valuation is going down your company is forked up and they often just pass.

Burn Rate 383
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Bad Notes on Venture Capital

Both Sides of the Table

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? “But lawyers will charge much more for equity.” Lawyers don’t make money on your seed round in any instance. Try doing THAT with equity. And so forth.

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Bad Notes on VC

Gust

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? But lawyers will charge much more for equity.” Lawyers don’t make money on your seed round in any instance. Try doing THAT with equity. Me: More dilution? And so forth.