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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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Driving Corporate Innovation: Design Thinking vs. Customer Development

Steve Blank

I’ve been spending some time with large companies that are interested in using Lean methods. Two methods, Design Thinking and Customer Development (the core of the Lean Startup) provide the tactical day-to-day process of how to turn ideas into products. . .

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Which Fundraising Round Should You Skip?

View from Seed

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.

Dilution 149
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Why More Funding Won’t Magically Fix Your Startup

Mucker Lab

Until you have product-market fit, hire builders: engineers, designers, and growth and product people. Or, you feel like you have so much cash that you can afford to burn it until your original idea eventually works. Sometimes founders misapply lean startup methodology. More and more investors have begun to shun high burn rates.

Startup 78
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Are Business Plans Still Necessary?

Both Sides of the Table

The last couple of years has also seen the huge initial success of Ycombinator, the Lean Startup and many other product driven approaches to going to market. Don’t know the running rate for engineers? I won’t need to hire many engineers or customer support staff. This information isn’t hard to find.

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Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

They need to raise money before building anything substantial after determining that they needed a little dough to follow the Lean Startup methodology. While that is true, if you rely on outside capital to reach escape velocity, keep the cockpit talking to the engine room. The plan would have to get way tighter, way faster.

Burn Rate 152
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Twitter Link Roundup #235 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Are startup burn rates out of control? Hiring startup engineers? Busting the Lean-Startup Myth – crowdspring.co/1ozOXHA. How Everything We Tell Ourselves About How Busy We Are Is A Lie | Fast Company – [link] crowdspring.co/1uH6HVo. They seem to be | AVC – crowdspring.co/1rbM5FT. 1ozOXHA.