Startup Professionals Musings

SEPTEMBER 29, 2018

Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. burn rate entrepreneur runway startup

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Burn Rate Hockey Stick Startup Salary 222

Feld Thoughts

OCTOBER 5, 2022

Andy Dunn , who I only know indirectly, wrote an important book titled Burn Rate: Launching a Startup and Losing My Mind. While there might be other entrepreneur autobiographies like Burn Rate , I can’t think of any. The post Book: Burn Rate: Launching a Startup and Losing My Mind appeared first on Brad Feld.

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Burn Rate New York Startup Restful 152

Hunter Walker

APRIL 17, 2022

What they really meant was that they enjoyed a lifestyle that was built around fees in addition to profit sharing, had a high personal burn rate, and were risk averse to putting more of their capital in the game. Why ‘Living Below Your Means’ Is One Key To Success & Happiness. $0

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Up and Running

APRIL 6, 2020

This can be a daunting task, but the best place to start is understanding and calculating your cash burn rate and your cash runway. How do you calculate the burn rate? This total number is your Gross Burn Rate. Burn Rate = Cash Received – Cash Paid Out.

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Burn Rate Forecast SBA Cash Position 100

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. But what IS the right amount of burn for a company? Gross Burn vs. Net Burn. Net burn is the amount of money you are losing per month.

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Burn Rate Startup Balance Sheet .Net 383

Startup Professionals Musings

JANUARY 28, 2011

Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway). Investors look at your burn rate to see how efficient and effective you are at running the business. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. For obvious reasons, you need to keep your burn rate low.

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Burn Rate Startup Salary Equity 230

Both Sides of the Table

JUNE 19, 2017

One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is. Of course there is no right answer but it’s a function of how much capital you have raised, your prospects for raising more capital in the future, your growth rate and your company’s risk tolerance. The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn.

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Burn Rate .Net Startup Venture Capital 212

Both Sides of the Table

FEBRUARY 15, 2016

This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?” Well if you took that option I would simply advise that you be a little bit more cautious with your burn rate.

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Burn Rate Cap Table Valuation Startup 259

Startup Professionals Musings

FEBRUARY 5, 2010

Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling. Investors look at your burn rate to see how efficient and effective you are at running the business. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. For obvious reasons, you need to keep your burn rate low.

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Burn Rate Salary Equity Startup 120

Startup Professionals Musings

JULY 4, 2021

Waste in a startup is any activity that burns resources, but creates no value or competitive advantage in the eyes of customers. burn rate lean startup thomas gray waste resourcesEvery entrepreneur I know is short on resources, including time, money, and skills.

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Burn Rate Startup Lean Metrics 400

Startup Professionals Musings

AUGUST 19, 2020

Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low.

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Burn Rate Hockey Stick Salary Equity 309

Professor VC

JULY 22, 2009

Burn Rate. The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. While there are certainly better books that chronicle the highs and lows of starting a company, Burn Rate does raise some interesting issues on the personal side of entrepreneurship. Burn Rate.

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Burn Rate San Jose Silicon Valley Angel Investor 28

Startup Professionals Musings

OCTOBER 5, 2014

Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. burn rate business cashflow entrepreneur investor startu

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Burn Rate Entrepreneur Hockey Stick Salary 260

Startup Professionals Musings

NOVEMBER 2, 2012

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? hype entrepreneur startup investor burn rate businessIf you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask.

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Burn Rate Due Diligence Sweat Equity Startup 242

Version One Ventures

JANUARY 23, 2019

You should also watch your burn rate and the amount of capital in the bank. Entrepreneurship Burn rate startupsThe world seems more volatile than ever before. There’s an explosion in the number of issues, combined with an ever-accelerating news cycle to cover each issue 24 hours a day. Much of today’s uncertainty can impact start-ups… When will the US government shutdown end? Are we heading into a US-China trade war?

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Burn Rate China Later Stage Venture Capital 90

Up and Running

FEBRUARY 20, 2015

For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. If you’re running a subscription business , you’ll want to track churn rate, monthly recurring revenue, lifetime value, and so on. However, there are a number of metrics that every business owner should know, including cash flow, accounts payable, accounts receivable, direct costs, operating margin, net profit, and cash burn rate.

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Metrics Burn Rate .Net Churn Rate 142

Early Growth Financial Services

FEBRUARY 7, 2013

More … Continue reading → Accounting Best Practices accounting function accounts payable accounts receivable burn rate business banking account cash burn chart of accounts coa collect payments entrepreneurs expenses online payments payment provider payments collection pre-funding startup startup accounting startup expenses startup taxes

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Early Stage Valuation Burn Rate Finance 50

Early Growth Financial Services

JANUARY 10, 2013

Keep in mind that your milestones may not be … Continue reading → angel investors burn rate cash burn cash flow dilution entrepreneur equity equity raises financial forecast financial milestones funding milestones funding negotiation staffing costs startup startup business strategy startup finance startup traction term sheets vc venture capitalistsOf utmost concern to many entrepreneurs is how to retain maximum equity in their startups. Rightly so.

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Equity Bootstrapping Term Sheet Burn Rate 38

Grasshopper Herder

JULY 24, 2017

Burn rates are meaningless in isolation. Iteration time is a critical aspect of starting a new business and we've noted a few misconceptions. The post Iteration = Time to Learn, Not Time to Build appeared first on GrasshopperHerder.com. Lean Startup User Experience & Research Continuous Improvement Entrepreneur Metrics & Innovation Accounting prioritization

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Burn Rate Metrics Lean Entrepreneur 175

Steve Blank

MARCH 17, 2020

The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month.

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Startup Burn Rate Venture Capital Azure 436

Hunter Walker

AUGUST 18, 2022

You Might Learn About Entrepreneurship Reading Andy Dunn’s Burn Rate But You’ll Learn Much More About Being Human. Burn Rate is an honest, vulnerable account of a life. Thank you Andy for Burn Rate.

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Burn Rate 107

Startup Professionals Musings

SEPTEMBER 14, 2016

Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. Cash flow is a basic survival metric for every startup.

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Burn Rate Hockey Stick Startup Salary 268

Steve Blank

FEBRUARY 24, 2015

This video describes how “Market Type” affects your revenue and your burn rate. Understanding “Market Type” can save you a ton of money and time. This 2-minute video explained “ why not all startups are the same ” and introduced the notion of “market type” and described the difference between new markets, existing markets and resegmented markets.

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Revenue Marketing Burn Rate Video 273

Startup Professionals Musings

JUNE 27, 2022

You know you should have been tracking the burn rate, or inventory requirements, or late receivables, but have found yourself totally distracted by a flock of emergency daily issues. They let the burn rate go up too fast, and the business burns down before it really starts.

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Burn Rate Startup Differentiation Salary 322

Startup Professionals Musings

FEBRUARY 18, 2023

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate?

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Sweat Equity Burn Rate Intellectual Property Accredited Investor 204

VC Adventure

MARCH 17, 2022

With the markets down significantly, financings (at least at the later stages) slowing down, and inflation and interest rates on the rise, perhaps now is a good time to talk about your burn rate. The post Money in the Bank vs Burn appeared first on VC Adventure.

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Balance Sheet Burn Rate Metrics Valuation 120

Startup Professionals Musings

MAY 22, 2020

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate?

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Due Diligence Startup Sweat Equity Burn Rate 436

Startup Professionals Musings

JULY 2, 2022

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Outside of dreams, there is no real business opportunity without risk.

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Startup Burn Rate Angel Investor Entrepreneur 378

YoungUpstarts

MAY 12, 2020

Analyze your ongoing burn-rate in both normal scenarios and ‘bear-bones’ scenarios. Consider where you can optimize your burn rate. by Athan Slotkin, The Shadow CEO. Unfortunately, the COVID-19 pandemic has already hit small businesses hard.

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Burn Rate Bandwidth Lean Business Model 263

Feld Thoughts

SEPTEMBER 9, 2015

Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.” I’m encountering an increasing number of companies with burn rates in the stratosphere. I get uncomfortable when the net burn rate for a company goes above $500k / month. In fast growing companies with a balance sheet > $25m I can stomach a $1m / month net burn. But when I see $2m / month net burn rates, I vomit.

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Burn Rate Liquidation Preference Balance Sheet .Net 194

Startup Professionals Musings

FEBRUARY 17, 2021

These steps alone can reduce your monthly burn rate by at least $10K. It wasn’t so many years ago that starting a new e-commerce business on the Internet was a complex custom development project, usually costing a million dollars or more.

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Cost Entrepreneur Burn Rate LLC 401

Steve Blank

SEPTEMBER 5, 2018

These bubble startups were actually guessing at their business model and did premature and aggressive hype and early company launches and had extremely high burn rates – all predicated on an IPO to raise more cash. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. Lean makes sense when capital is scarce and when you need to keep burn rates low.

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Lean Startup Customer Development Venture Capital 334

Startup Professionals Musings

SEPTEMBER 21, 2019

You know you should have been tracking the burn rate, or inventory requirements, or late receivables, but have found yourself totally distracted by a flock of emergency daily issues. They let the burn rate go up too fast, and the business burns down before it really starts.

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Entrepreneur Burn Rate Startup Differentiation 248

Startup Professionals Musings

FEBRUARY 5, 2021

Project your cash burn rate to keep at least 18 months between venture capital or angel investments.

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Forecast Startup Widget Burn Rate 366

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Investors are rewarding cautious growth more than high-burn-rate growth at all except the most successful of companies (and even there it may eventually change).

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Burn Rate Startup Valuation Cap Table 269

YoungUpstarts

AUGUST 31, 2019

Keep Cash Burn Low. Every startup, no matter how small or large, should have a clear understanding of its burn rate. Burn rate, much like fire itself, must be managed effectively, or your start-up—like the nearly 30% of all small businesses who fold due to cash flow problems—will burn too hot before sinking below the waves,” PurchaseControl explains. The first step is to calculate your burn rate.

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Founder Burn Rate Lean Startup 129

Startup Professionals Musings

SEPTEMBER 12, 2021

They can iterate and evolve their business idea with a low burn rate and minimal dependencies. As a startup mentor and investor, I am approached regularly by aspiring entrepreneurs who assert that business plans take too much time, are inaccurate, and rarely add value.

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Business Plan Startup Due Diligence Angel Investor 310

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. You’re burning the very people who were your early supporters. This article previously appeared in TechCrunch.

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The Equity Kicker

AUGUST 13, 2015

As with weight, burn rates are very easy to increase but take large amounts of discipline and suffering to decrease. That’s not always so in startups where progress is hard to measure and larger burn rates increase the sense of momentum. “Spending money is like getting fat” is a sub-title from a great Techcrunch post about the dangers of raising big rounds. I love the analogy.

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Equity Burn Rate Lean Employee 127

Both Sides of the Table

OCTOBER 14, 2015

” It goes like this: What is your net burn rate? What is your revenue growth rate and what does this imply about your number of months of capital remaining? We have an entire generation of startup founders who don’t have muscle memory from getting their burn rates back into shape from 2008/09 or 2001-2005. But I’m certainly willing to say RIP Excess Burn. Today Twitter announced it had laid off around 336 jobs or 8% of its workforce.

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Burn Rate San Francisco LP Private Equity 392

Both Sides of the Table

MAY 28, 2018

Founder: “$8–10 million” VC: “What’s your current burn rate?” VC: “So at a constant rate of burn rate you’d be raising enough for 2.5–3 VCs tend not to want to fund founders who raise too much money in a given round also because they know that sometimes having too many resources will lead to founders burning through cash too quickly.

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Burn Rate Valuation Pre-Money Valuation Dilution 247

The Next Web

SEPTEMBER 12, 2015

million of investor funding on the line, flatlined growth, a burn rate that would make even seasoned entrepreneurs cringe, and daily founder battles that were promising to undo all that we had built. There we were, $1.1 We knew we had to make some hard decisions, or our company wouldn’t last the next few months. When we started out, the mission was simple: To help remote teams feel like they were in the same room, even if they were scattered across the globe.

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Cofounder Web Founder Burn Rate 133

Steve Blank

JULY 30, 2014

Startups operate quickly – at a speed driven by the urgency of a proverbial gun-to-their-head called “burn rate.” their burn rate (the amount of money they’re spending monthly minus any revenue coming in) and. Second, burn rate and dwindling cash meant startups had to find these customers and the attendant product/market fit rapidly – before they ran out of money.

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