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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

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. I’m surprised how few entrepreneurs have this open conversation with their investors.

Burn Rate 150
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Startups and financial models for SAAS companies

BeyondVC

The other day I met with an entrepreneur I was advising as he prepared to raise his next round of funding. While the revenue model may change as well, I like to at least understand going into the investment that the entrepreneur's head is in the right place and that the economics work right from the start.

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Startup Benchmarks

VC Cafe

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? What should our MRR growth be?

B2C 141
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Is Your Startup Tracking the Right Metrics?

Up and Running

Caroline: It would also be great to know if the entrepreneurs in the room are tracking any of this right now, the metrics that Sabrina has already talked about. If you look at something like Constant Contact with a 2% churn rate, their customers are going to stick around something around 36 months. Okay, so great.

Metrics 84