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.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

YoungUpstarts

JULY 31, 2019

Cunningham’s term was coined to identify a specific problem in the tech industry, but the fundamental concept is universal — Ben Horowitz, for example, took Cunningham’s concept and applied it to management structures. . They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Both Sides of the Table

JUNE 17, 2017

They don’t want high burn rates but they will never fund slow growth. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). This is precisely why large Internet categories often produce “winner takes most” outcomes.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

ReadWriteStart

JANUARY 27, 2011

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Professor VC

JANUARY 17, 2008

I guess you can make the argument that the founders keep more of the company under the take angel money at a $1M pre-money valuation, but the stars need to be aligned and it is much more likely that initial VC funding in the angel scenario would be at a lower valuation with significantly more dilution. Labels: angel groups , valuation.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

BeyondVC

JUNE 11, 2007

If you burn through your cash and can’t make the monthly principal and interest payments, your lender can take over your company as their debt is usually secured against your company and intellectual property.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. The same thing happened to many Internet stocks.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40