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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 In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins). Valuation. I wanted to call out special attention to valuation in this debate.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. Point number 3: Never raise money with an increased valuation. Establish a competitive advantage.

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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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Silicon Valley Venture Capital Survey Finds That, Yes, Valuations Are Up

ReadWriteStart

The survey looks at the valuations and the terms of financing for over 100 technology companies in Silicon Valley that reported raising capital in the third quarter of this year. And not surprisingly, perhaps, the survey found that valuations are up. The full survey can be downloaded here.

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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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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.