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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. But the hardest question to actually answer is, “What is the right burn rate for your company?”

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

Much of it is very short term focused and, like a giant tractor beam, draws the conversation into a very short time horizon (as in days or weeks). ” Many companies have hired ahead of their growth rate because they had the cash to do so. Then use the down round to clean up your preference overhang.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

Lost in this conversation are the dramatic differences between a high priced private round and an IPO. Conversely, these late stage private rounds have no such pageantry or process. Most private company financings involve the use of preferred stock with liquidation preferences. We are in a risk bubble.

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Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

do not think being friends or relatives reduces the need for these difficult and/or awkward conversations. Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM And for the love of high-speed internet and all things Web 2.0,