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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

” Stay lean and only raise a big round if you DO find product / market fit and which point you want to loosen the belt quickly and raise the capital to do so. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation.

Burn Rate 383
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Make Price the Last Thing

David Cohen

Entrepreneurs will name the pre-money or post-money valuation, and sometimes they even lead with the pricing. On the other hand, if you lead with your idea and they start to lean in and get excited about that, they might end up not caring that much about price at all.

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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target. 500M valuation = $5B target. Find one person, make them your sherpa, and lean on them.

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57 Things I've Learned Founding 3 Tech Companies

betashop.com

Find one person, make them your sherpa, and lean on them. . That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target. Don’t do this by committee.

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Series A Dynamics – Ownership, Timing, and Valuation

Rob Go

But having the capital in the bank to make the most of an attractive opportunity sooner usually is the better move overall and will enhance valuation in the long term. Second, when things are working, founders will usually lean into the opportunity with the capital they have, which will reduce runway but make their growth curve steeper.