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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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 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).

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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

At Fab, our virtual product is our website & apps, our physical products are the merchandise we sell, and our experience product is our operations and service. Do they operate in silos or do they foster teamwork and collaboration? 10M post-money valuation = $100M target. 500M valuation = $5B target.

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Series A Dynamics – Ownership, Timing, and Valuation

Rob Go

As an entrepreneur, one could always make the argument that it’s best to keep operating longer and show more progress before raising to get the best valuation possible. There are broadly three buckets of series A’s, and therefore, three valuation buckets.