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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. So money spent should add equity value or create IP that eventually will.

Burn Rate 383
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Venture Debt 101

Up and Running

Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor. The cost of venture debt capital is very, very low. Covenants: borrowers face fewer operational restrictions or covenants with venture debt.

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Understand the tricks Multinationals use to avoid paying tax

Start Up Blog

Often high enough to remove any local profit for operations in higher taxed economies. Ensure money is transferred to low cost tax markets as a high cost tax market expense. This is not done to save on production costs, but to justify the location of IP assets in these low tax regimes.