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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000.

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5 Most Successful Products Ever and What Small Businesses Can Learn From Them

crowdSPRING Blog

It’s not surprising that companies with successful products grow their customer base, increase their revenues, and outperform competitors. iPhone (2007). In 2007 Apple launched the iPhone and revolutionized the mobile phone industry. Lipitor (1997). And, of course, ask the vital question – why?

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class.

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Capital Market Climate Change

Ben's Blog

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/31/1997: 23.3. 3/30/2007: 22.6. But they most certainly are not. Or maybe you are a lucky enterprise company and are pleasantly surprised—this time.

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Capital Market Climate Change

Ben's Blog

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/31/1997: 23.3 3/30/2007: 22.6 But they most certainly are not. Or maybe you are a lucky enterprise company and are pleasantly surprised—this time.

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How Falling In Love With My Product Killed My Business

Software By Rob

Rogue Wave’s fall began during Java’s rise to power in 1997-8. When everyone took notice of Java and abandoned C++ in droves, Rogue Wave’s revenues plummeted. They still saw their license revenue coming in, albeit a little lower each quarter. As a result, Rogue Wave’s revenues continued to decline.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. You’ll see here that in 2007 people were willing to pay 7.7x What is the True Sentiment of VCs? This corrected only to go back up to 13.4x

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