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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.

Burn Rate 383
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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million.

Burn Rate 263
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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. There is $350k left in the bank.

Burn Rate 152
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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. But they may not have figured out the sales model just yet. You have developed a clear and repeatable sales process.

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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.

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ProfessorVC: 4 Lessons of Entrepreneurship

Professor VC

Challenge the Status Quo - StubHub entered an industry dominated by a couple of large players who had a vested interest to block the legality of their business of providing a marketplace for the sale of tickets in the secondary market. He definitely had a lot of people tell him that it couldnt be done. Can Entrepreneurship Be Taught?

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ProfessorVC: Waah.Do I have to build a financial model?

Professor VC

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?