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Is the Lean Startup Dead?

Steve Blank

Most entrepreneurs today don’t remember the Dot-Com bubble of 1995 or the Dot-Com crash that followed in 2000. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. It’s the antithesis of the Lean Startup.

Lean 335
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Working Capital vs. Cash Flow: The Differences and How to Better Manage Them

Up and Running

On the other hand, if you receive a payment of $2000, that’s considered income or revenue, you’ll generate positive cash flow that can be reinvested in other areas. . This can factor in a variety of things such as inventory, equipment, investment value, cash on hand, accounts payable, deferred revenue, and debt. .

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The Virus Survival Strategy For Your Startup

Steve Blank

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436
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Start-ups are all Naked in the Mirror

Both Sides of the Table

My competitors from those days STILL love to talk about how much money we raised in February 2000 (get over it already!). Our sales forecasts were revised downward – many times. I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. We were hot.

PR 331
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How Reed Hastings’ Facebook Status Update Landed Netflix in SEC’s Crosshairs

Gust

Modern theories of economics and finance teach us that in a world of perfect information, the market will decide what a fair price is for any company’s stock at any point in time based on its current financial condition, results of past operations, analysts’ forecasts of future performance, industry conditions and so on.

SEC 158
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Twitter Link Roundup #162 – Small Business, Social Media, Design, Copywriting, Marketing And More

crowdSPRING Blog

A VC: MBA Mondays: Revenue Models – Subscriptions – [link]. Thanks To Facebook, Strongest Year For IPOs Since 2000 With $21.5 Creative Forecast: How Marketing Will Change In 2013 | Co.Create – [link]. The Science of Productivity: How To Get More Done In Less Time – [link].

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. LinkedIn’s product had only been live for a couple months, we only had tens of thousands of registered users, and wouldn’t start generating revenue for more than a year after this point.