Remove Down Round Remove Internet Remove Operations Remove Valuation
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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. Valuation. I wanted to call out special attention to valuation in this debate.

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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.

Startup 150
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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! million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

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Sustainable startup growth and venture capital

The Equity Kicker

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. The best startups capture all the returns so focusing too much on entry valuation is a mistake. I read it too, because it’s a big deal.

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On the Road to Recap:

abovethecrowd.com

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. The same thing happened to many Internet stocks.

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