Both Sides of the Table

SEPTEMBER 28, 2014

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.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. 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.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

K9 Ventures

MAY 28, 2015

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. I call this Revenue Development and have written about it before. >$0/month. That’s real money.

Revenue 48

Revenue Startup Burn Rate Cofounder 48

BeyondVC

DECEMBER 6, 2006

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.

Burn Rate 79

Burn Rate Cloud Hiring Sales 79

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. Read More] Tracked on August 14, 2007 at 03:37 PM Comments Great post !!!!!!!!

Equity 40

Equity Employee Dilution Valuation 40

Professor VC

AUGUST 26, 2011

To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. Does a complicated sales build model make sense for a pre-revenue SaaS company? Can Entrepreneurship Be Taught?

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

Both Sides of the Table

FEBRUARY 14, 2016

Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. You’ll see here that in 2007 people were willing to pay 7.7x forward revenue for SaaS businesses when in the years before it had been less than 5x. This corrected only to go back up to 13.4x

Valuation 150

Valuation Down Round Startup Later Stage 150