Remove Burn Rate Remove Customer Remove Dilution Remove Internet
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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.

Burn Rate 383
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Fundraising Debt And How To Avoid It

YoungUpstarts

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.

Cofounder 127
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Should Startups Care About Profitability?

Both Sides of the Table

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. Revenue When I look at an income statement I start by focusing on the revenue line.

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

ReadWriteStart

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.

Dilution 114
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Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

And for the love of high-speed internet and all things Web 2.0, 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 He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

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An Inside Scoop on the Funding Environment and What it Might Mean for You

Both Sides of the Table

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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When to throw out the rules

Reid Hoffman

Careful planning, cautious investment, and courteous service may end up being tossed aside in favor of rapid guesstimates, inefficient capital expenditures, and ignoring angry customers. But it is also clearly faster, and has allowed Uber to grow its engineering team (which is typically a major challenge) at higher rate.