article thumbnail

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. Great businesses begin with a customer problem that has a big and monetizable pain point.

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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.

Burn Rate 383
article thumbnail

The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

Some of these folks are founders and CEOs, but not at high-growth tech startups. They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. The first thing you need to get straight with a high net worth individual—what is their return expectation? Perhaps they inherited it.

.Net 88
article thumbnail

Critical Key Performance Indicators (KPIs) for Founders

Up and Running

However, as a founder of a small business or startup, you’re juggling many things. KPIs Every Founder Should Track. Revenue growth rate: measures the month-over-month percentage increase in revenue and is the most common and important metric for startups. “What gets measured gets done.” . Sales KPIs.

Founder 71
article thumbnail

A heartbreaking story about time and money.

Berkonomics

How about young or pre-revenue companies? Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. Lots of good jobs were lost and many investors including me were left with the question.

article thumbnail

Conversion, retention and churn benchmarks

VC Cafe

This is a question startup founders ask themselves multiple times a week. It’s not just the competition against the incumbents and the large tech platforms that founders has to worry about, but most importantly is the company’s performance and product market fit. How are we doing?

Retention 109