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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

It helped me avoid chasing deals (and a house) in 2007/08 and it led to GRP’s fastest pace of investment in many years in the first three quarters of 2009 at a time when many others weren’t investing. Enter the famous Sequoia “RIP Good Times” presentation and Ron Conway’s publicly leaked emails calling for big slashes in burn rates.

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Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

His most recent company, Filtrbox, participated in the inaugural Techstars class (Techstars Boulder 2007) and was a win for all parties involved; Filtrbox was acquired in 2010 by Jive Software (NASDAQ: JIVE). I’ve worked closely with Ari for a while and love his candor. The plan would have to get way tighter, way faster.

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Startup Revenue Milestones

K9 Ventures

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. By carefully managing your burn rate and steadily growing revenue, you can now survive — almost forever.

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ProfessorVC: Why didn't I think of that??

Professor VC

One of my favorite projects from 2007 was a solar power wetsuit. I really enjoy the collaboration among students in different parts of the university and the excitement of talking about their ideas and thinking through the business potential, particularly for the non-business students. Can Entrepreneurship Be Taught? ► October. (1).

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ProfessorVC: 4 Lessons of Entrepreneurship

Professor VC

Its Ok to Exit a Little Early -StubHub was experiencing great growth and hitting its metrics when Ebay acquired the company in early 2007 It is quite possible that Jeff could have gotten a higher price for the company by waiting, but felt there were a number of benefits to exiting when they did. Can Entrepreneurship Be Taught? ► July.

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Setting unattainable goals can hurt your company

BeyondVC

It is near the end of the year and I would hope by now that most companies have been through a revision or two of their strategic plan and budget for 2007. What this does is allow companies to manage to a certain burn rate (baseline) but at the same time continue to push its teams to excel and deliver results.