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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

it is also the title of a fabulous book from Internet 1.0 If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In these kinds of businesses I’m on the record as advising “ Ring the Freakin Cash Register.”

Burn Rate 383
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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

The fact that today’s Internet bubble does not represent all companies does not disprove its existence. Ah, but today’s Internet companies have real revenue! New investors hate down rounds. If you are interested the Vimeo is here. I said that at the Founder Showcase, too. and profits! That’s a fact.

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People-First Capitalism

Reid Hoffman

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. Airbnb got scrutiny before we were big, because Airbnb meant the internet moving into your neighborhood. And I also think about regulation. So we’re going to do debt.

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People-First Capitalism

Reid Hoffman

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. Airbnb got scrutiny before we were big, because Airbnb meant the internet moving into your neighborhood. And I also think about regulation. So we’re going to do debt.