Remove Burn Rate Remove Cost Remove Retention Remove Revenue
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From Fat to Fit: Startups Must Navigate Back to Fundamentals to Achieve Long-term Success 

The Startup Magazine

This strategic pivot is designed to address the issue of startups unsustainably broadening their customer base and product lines, which results in inefficiencies and escalates customer acquisition costs. Their net revenue retention (NRR) soared to 150%, a testament to their product’s value to existing customers.

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Which Fundraising Round Should You Skip?

View from Seed

Also, the benefit of raising a pre-seed from great partners probably outweighs the cost. As a first time founder, having a few million dollars in the bank after a successful seed raise may seem like a huge amount of capital, and it’s easy to lose discipline around your burn rate.

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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

A data-driven approach can help you make accurate and timely business decisions to meet market demands and improve cost-efficiency. Activation rate: measures how many visitors are engaging with your website or app. Customer churn rate: shows the percentage of customers lost in a given period (e.g., Marketing KPIs. Sales KPIs.

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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. They don’t want high burn rates but they will never fund slow growth. You need to understand the “quality” of the revenue.

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An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart. The seed stage is all about traction.

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Is the Lean Startup concept of MVP dead?

VC Cafe

In fact, they were screaming at them to dramatically reduce their burn rates. In a capital scarce environment following the Dot Com crash, startups needed to do more with less and survive long enough to generate revenue. The fundamentals (unit economics/ margins, CAC>LTV, the importance of retention) are more important now.

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