article thumbnail

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.

Burn Rate 383
article thumbnail

In a Strong Wind Even Turkeys Can Fly

Both Sides of the Table

By 1999 we had grown into the largest independent consulting firm in the world. By 1999 it seemed like everybody was growing, though. I left Andersen Consulting in 1999 at the height of the market. In other words, in a strong market even turkeys can fly. Ameet was right. The things that always differentiated Accenture?

Turkey 302
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 biggest enemy of a startup?

K9 Ventures

In 1998–1999, when I was running my first company, one of my investors, the late Don Jones , came by to visit us at the office. Our company was at a stage where we were recruiting, building product, and trying to find product market fit. I’ve written before about Revenue Development ).

article thumbnail

It’s Morning in Venture Capital

Both Sides of the Table

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. In 1998 it was 150 million, 1999 250 million and by 2000 it had crossed 350 million.

article thumbnail

10 Digital Startup Conferences You Should Attend This Year

YoungUpstarts

This is particularly true in the early stages of a new venture when you may be a solopreneur or working with a very small team. Founded in 1999, Etail was one of the first conferences devoted to e-commerce, and it remains one of the biggest. by Thomas Smale, founder of FE International. eTail East. Boston, USA.

Las Vegas 124
article thumbnail

How to Write a Business Plan for Raising Venture Capital

Growthink Blog

Presenting a plan in which the company grows too quickly will show the naiveté of the management team, while presenting too conservative a growth plan will often fail to excite an early stage investor (who typically looks for a 10X return on her investment). Detail all revenue streams. Be sure to include all revenue streams.

article thumbnail

Time is the Enemy of All Deals

Both Sides of the Table

When I was raising money for my first company we had closed a seed round in 1999 and were working on our A round. We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. It was December 1999. It was December 1999. Let me start with a story. They accepted my argument.