Startup Professionals Musings

JUNE 18, 2012

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Cost 255

Cost Burn Rate SEM Startup 255

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. So let’s consider an even more aggressive “super high growth” Internet company.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

YoungUpstarts

JUNE 17, 2019

Attracting new customers to grow any online business can be tough. Startups are regarded for their embrace of industry disruption, all the while constantly trying to limit their burn rate and conserving their capital for future growth. by Boris Pfeiffer , CEO and Founder of Riddle. Marketing: startup style.

Marketing 147

Marketing Startup Burn Rate Advertising 147

Startup Professionals Musings

FEBRUARY 15, 2011

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Entrepreneur 235

Entrepreneur Burn Rate SEM Social Network 235

Steve Blank

JUNE 1, 2011

As customer and agile development reinvent the Startup, it’s time to ask why startup board governance has not kept up with the pace of innovation. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. There are none so blind as those who will not see. Jonathan Swift.

Silicon Valley 297

Silicon Valley Business Model Venture Capital Balance Sheet 297

Startup Professionals Musings

APRIL 23, 2016

Here are my top ten tips to get the best ones interested in you, as well as deciding if the entrepreneurial fit is right for you: Optimize visibility and image on the Internet. How you manage your “personal brand” on the Internet is indicative of an ability to manage a startup brand later. Be sensitive to culture and operating mode.

Startup 120

Startup Burn Rate Cofounder Salary 120

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Burn Rate 148

Burn Rate Startup Revenue Valuation 148

Startup Professionals Musings

MARCH 28, 2016

While the CFO usually takes the lead in finding professional investors, everyone needs to look for ways to reduce the burn rate and maximize alternative funding sources, including bartering for services, finding partners willing to accept deferred payments and talking to friends and family. Finding creative ways to fund activities.

Entrepreneur 120

Entrepreneur Burn Rate Leadership Salary 120

Steve Blank

JUNE 1, 2011

As customer and agile development reinvent the Startup, it’s time to ask why startup board governance has not kept up with the pace of innovation. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. There are none so blind as those who will not see. Jonathan Swift.

Silicon Valley 270

Silicon Valley Business Model Venture Capital Balance Sheet 270

Gust

JUNE 10, 2012

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Cost 139

Cost Burn Rate SEM Startup 139

Both Sides of the Table

APRIL 23, 2011

In the late 90’s he saw the internet boom and helped start IronPlanet.com, a construction equipment marketplace that is nearing an IPO. At the time consumer internet venture capital was still suffering from the collapse of the Tech Bubble. ESPN, Forbes, AOL were customers. The in invest in IT (Software + Internet + Healthcare).

Vertical 265

Vertical Curation Boston Burn Rate 265

VC Cafe

JULY 26, 2020

In fact, they were screaming at them to dramatically reduce their burn rates. Ditch the business plan and when assumptions are proven wrong, pivot Customer Development: Build a product your customers want (vs. Angel investment, which was small to start with, disappeared, and most corporate VCs shut down.

Lean 214

Lean Seed Capital Startup Burn Rate 214

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Burn Rate 78

Burn Rate Startup Revenue Valuation 78

Startup Professionals Musings

FEBRUARY 13, 2010

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Burn Rate 125

Burn Rate SEM Social Network Angel Investor 125

Mucker Lab

MARCH 8, 2016

We’ve been doing Internet stuff our whole careers, since the graphical web became a mass-market, commercial medium in the 1990s. How can we tell founders to stay lean, keep focused on their customers, and keep burn rates low if we cannot walk the talk and eat our own dog food? The underdogs. The dogged visionaries.

Burn Rate 60

Burn Rate Limited Partner Bootstrapping Portfolio 60

The Equity Kicker

JANUARY 10, 2020

It’s got a big burn rate, it’s too big to pivot, and it goes bust. We’re obsessively focused on customers and use cases. It’s not too much of an overstatement to say that, 20 years ago, at the beginning of the internet, you could put almost any quality of experience online. The customer experience has got to be better.

Partner 68

Partner Early Stage Portfolio Metrics 68

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Burn Rate 60

Burn Rate Startup Revenue Internet 60

ReadWriteStart

JUNE 13, 2011

As customer and agile development reinvent the startup, it's time to ask why startup board governance has not kept up with the pace of innovation. The process, which Blank detailed in his book, "The Four Steps to the Epiphany," uses customer feedback to refine and improve a product before scaling a business.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Startup Lessons Learned

MAY 15, 2020

It's never selfish to try to do the right thing for your employees, your customers, and your stakeholders." They're going to look to see how you treated your customers. 22:13) The way companies treat employees and customers and impact their communities now will them for decades to come. It's never selfish to hire. ER : Totally.

Dallas 68

Dallas Employee Government Social Media 68

Steve Blank

NOVEMBER 2, 2009

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. And most startup code and features end up on the floor as customers never really wanted them.

Lean 260

Lean Silicon Valley Startup RSS 260

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.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Hearpreneur

JULY 7, 2019

Entrepreneurs have the ability to redefine the conversation while creating a customer-centric way of moving the world and our lives forward. With increasingly powerful broadband internet and fiber, the ability to work remotely yet feel connected has dramatically improved. As an entrepreneur, it is a very exciting time! Thanks to Ira.M.

Entrepreneur 92

Entrepreneur Distribution Employee Arizona 92

VC Cafe

APRIL 27, 2011

VCs should aim to provide comprehensive data to their portcos on industry benchmarks, burn rates, market research, competitive analysis, etc. So what makes one VC fund be better perceived than others? Be a data source – the data flow between a VC and a startup doesn’t have to be one-sided.

Venture Capital 90

Venture Capital Differentiation Incubator Angel Investor 90

Startup Lessons Learned

MARCH 27, 2009

The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). Combining agile development with customer developm.

San Francisco 117

San Francisco Lean Continuous Deployment DC 117

Startup Lessons Learned

MARCH 13, 2009

Marketing launch) Make a new product available to customers in the general public. In particular, a marketing launch can help you do three things (courtesy, as is most of my marketing advice, of The Four Steps to the Epiphany ): Drive customers into your sales pipeline. Do your customers really read TechCrunch?

San Francisco 168

San Francisco PR Lean Early Stage 168

VC Cafe

FEBRUARY 6, 2011

And if you don’t have US business activity, then get a beta customer for initial footprint. R&D outside SV is normally cheaper, so it helps you keeping your burn rate low. Jeff Clavier, Seed stage investor in 90+ consumer internet startups, said: We all have a different approach to non Silicon Valley opportunities.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

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. Some startups will get ahead of the difficult task of attracting capital in markets with more scrutiny and will adjust burn-rates, growth rates and prices.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

thestartuplawyer.com

FEBRUARY 24, 2010

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.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

abovethecrowd.com

FEBRUARY 24, 2015

Customers will love you for giving away more value that you charge, and therefore, focusing exclusively on revenue success is a sure-fire path to risk exposure. Many companies embed costs that are truly variable (for instance customer support, marketing, credit card processing) below the gross margin line. We are in a risk bubble.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

www.chubbybrain.com

SEPTEMBER 28, 2011

Thin line between life and death of internet service is a number of users. Not close enough to the customer. Title: The Leap: A Memoir of Love and Madness in the Internet Gold Rush. Title: Burn Rate: How I Survived the Gold Rush Years on the Internet. Company : Overto. Author : Pawel Brodzinski.

Software Review 79

Software Review Startup Technical Review Vesting 79

Reid Hoffman

NOVEMBER 14, 2018

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. On the Internet, that’s largely untrue. Customer Support. Ignore your customers! In a word, speed.

Engineer 28

Engineer Burn Rate Hiring Dilution 28

Startup Lessons Learned

JANUARY 30, 2009

Here are a few: We know what customers want. By hiring experts, conducting lots of focus groups, and executing to a detailed plan, the company became deluded that it knew what customers wanted. But that was two full years before any customers were allowed to use it. Stealth is a customer-free zone.

San Francisco 150

San Francisco Lean Agile Continuous Deployment 150