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. Growth vs. .”
View from Seed
OCTOBER 24, 2019
The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. No good investor would want the founder/CEO of a company to have insufficient ownership by the series A, and every founder I know is sensitive to taking too much dilution.
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YoungUpstarts
JULY 31, 2019
But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale. They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.
Both Sides of the Table
SEPTEMBER 29, 2009
High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.
ReadWriteStart
JANUARY 27, 2011
This partnership speaks to a core philosophy of the program where we encourage entrepreneurs to get as much customer validation as possible before raising too much money, use other people's channels if you can get to them, don't burn too much cash, and all that good fiscal conservative stuff. Brainscape. Note, I said, validated.
Both Sides of the Table
JUNE 17, 2017
They don’t want high burn rates but they will never fund slow growth. I want to understand how many units the company is selling, whether this is increasing over time and how well they’re doing at retaining the customers that they do acquire. Stock option grants dilute your ownership in the company.
Both Sides of the Table
MARCH 30, 2016
Total customers grew 20% year/year. We had grown into a more reasonable burn rate so raising capital meant we would have many years of cash on the balance sheet. They had to focus on getting a “W” one day over the short-term dilution impact of raising at a price lower than they had set out to achieve.
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