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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

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The Shift from FOMO to FOLD in Early Stage Investing

View from Seed

This is unfortunately a net negative for the ecosystem, as it will be tougher for first time founders and underrepresented minorities to get capital in this environment. However, not everything will be a net negative to the ecosystem. I think VCs doing real diligence is probably a good thing.

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6 New Venture Realities To Target Your Funding Effort

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”).

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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

This is true not only in terms of GAAP net profit (most conservative representation of profit), but also Airbnb’s FCF is well above even its adjusted EBITDA (most liberal representation of profit, sometimes referred to in jest as “profit before the bad stuff”).

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The Difference Between Innovators and Entrepreneurs

Steve Blank

Building a company takes very different skills than building a neural net in Python or decentralized blockchain apps in Ethereum. But what I’ve noticed is that it’s rare that the smartest technical innovator is the most successful entrepreneur. Being a domain expert in a technology field rarely makes you competent in commerce.

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5 Key Points Of Focus For Every Scalable New Venture

Startup Professionals Musings

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here.

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7 Ethical Fictions Lead Many New Entrepreneurs Astray

Startup Professionals Musings

One 11-year study of over 200 companies over a decade ago, detailed in the book “ Corporate Culture and Performance ,” found that those working on their culture improved revenue by 516%, and increased net income by 755%. One of the keys to setting the right ethical tone is understanding and avoiding the myths and pitfalls of others.