Remove Burn Rate Remove Business Model Remove Finance Remove Revenue
article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

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. Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. They’re Back. Why do VCs Do This?

Cram Down 404
article thumbnail

Turn What-if to What-Now: The Importance of Scenario Analysis

Up and Running

Does that impact your business? Financing options: Can I get an emergency payroll loan? Each scenario combines the key numbers in the hypothetical case and explores the impact on the bottom line, and helps you define your cash burn rate and runway. What if it lasts six months? How does that impact the numbers?

Forecast 120
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. The business is already profitable with $2.9 million in revenue.

Dilution 114
article thumbnail

No Accounting For Startups

Steve Blank

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Here’s why.

article thumbnail

10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

article thumbnail

10 Reasons for a Startup to Skip Outside Investors

Startup Professionals Musings

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Startup 264
article thumbnail

10 Incentives For Entrepreneurs To Bootstrap Their Startup

Gust

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.