Up and Running

SEPTEMBER 17, 2014

That’s why we asked nine members from Young Entrepreneur Council (YEC) what metrics all founders should be aware of — always. It is crucial for entrepreneurs to understand their costs of goods and services. I believe all entrepreneurs should know their business. Young Entrepreneur Council' Cash on Hand.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

ReadWriteStart

JULY 9, 2023

Legal Nuances Entrepreneurs, especially newbies, tend to get taken away by their idea for a startup. Communication Oftentimes entrepreneurs-to-be don’t realize that being a startup founder means communicating a lot and with a crazy amount of people. Nobody is born a CEO or an industry leader, but you can learn the essentials.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

Both Sides of the Table

MAY 2, 2015

It’s the nature of most entrepreneurs, honestly. A great finance leader is on top of your numbers with such precision that you don’t have to worry about it. They can show the projections on what this does to burn rate. Another thing entrepreneurs f**k up? It’s the norm more than you think.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

JULY 13, 2013

My mom was an entrepreneur – she was kind of my inspiration for entrepreneurship. I got a job at a bank, and I worked in their corporate finance group. And no one could see me as anything but a startup guy, so I started a second company and called myself a serial entrepreneur. My mom grew up in the States.

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Gust

DECEMBER 7, 2014

Eighty percent of new entrepreneurs use this approach, with only six percent using investor funding. The remaining entrepreneurs borrow from family and friends, or acquire a loan. Count on several months of effort and costly assistance to court investors, with less than a 10% success rate.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

The Next Web

DECEMBER 2, 2013

Luck, timing and social engineering are bigger components than most entrepreneurs care to imagine,” adds Werdelin. Considering Facebook’s scale, the company is now in the business of operating power plants to operate its servers, therefore, Schippers estimates that Facebook has a $30 million dollar monthly burn rate just for hosting.

Cost 168

Cost San Francisco New York City Ruby 168

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. LetsGiftIt. million in revenue.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Startup Professionals Musings

NOVEMBER 28, 2012

Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. A variation on this theme is promising a burn rate to investors than you can’t deliver.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Professor VC

JULY 22, 2009

The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. I also teach Entrepreneurial Finance at San Jose State. ProfessorVC. Steve Bennet.

Burn Rate 28

Burn Rate San Jose Silicon Valley Angel Investor 28

YoungUpstarts

JANUARY 9, 2017

by Tina Hay, founder and CEO of Napkin Finance. One of the most important factors in becoming a successful entrepreneur is managing finances. Estimate your monthly “burn rate.” If you’re headed down the road of disrupting an industry, check out the Napkin Finance advice for starting a startup. .

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

This is going to be BIG.

MARCH 1, 2010

What gets frustrating is that I tend to hear the same arguments over and over again from new entrepreneurs, and many of them are just completely unfunded. Unfortunately, they tend to resonate really well with frustrated entrepreneurs and a lot of dust gets kicked up over them. You know what—it’s supposed to work like that!

New York City 113

New York City New York Startup Burn Rate 113

Both Sides of the Table

FEBRUARY 6, 2017

But the reality is that “global warming” massively blunted the effects of winter and my prognosis for VC fundings of entrepreneurs in 2017–2018 is now very sunny indeed. This past year was also the year that startup boards also got more disciplined about containing burn rates and pushing for companies to be run more pragmatically.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

YoungUpstarts

MARCH 30, 2018

At the rate of which fintech is growing as an industry, there’s little doubt thousands of innovators, investors, and tech-savvy entrepreneurs are looking for ways to join in on the fun. Silicon Valley is an obvious choice for many entrepreneurs, as even Google and Apple have their headquarters there. Don’t follow their lead.

Silicon Valley 133

Silicon Valley San Francisco Founder Burn Rate 133

Both Sides of the Table

FEBRUARY 4, 2016

.” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Startup Professionals Musings

JUNE 28, 2013

Eighty percent of new entrepreneurs used this approach, with only six percent using investor funding. The remaining entrepreneurs borrowed from family and friends, or acquired a loan. Count on several months of effort and costly assistance to court investors, with less than a 10% success rate.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. So my view is that VCs and entrepreneurs need to make tougher choices.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Up and Running

JUNE 18, 2013

This just about sums up the financial stress of being an entrepreneur. LivePlan’s cloud-based Scoreboard feature enables you to track your finances on the go. Keep an eye on both your monthly burn rate and any major payables to make sure you’re financially viable in the immediate future. How much runway do we have?

Metrics 79

Metrics Burn Rate .Net Finance 79

Genuine VC

JANUARY 10, 2012

I recently received a email from an entrepreneur who I know with a genuine question about terms of his financing: " How do you guys at NextView feel about one of our investors holding super pro - rata rights for the next round?"

Term Sheet 131

Term Sheet Burn Rate Valuation Dilution 131

Both Sides of the Table

APRIL 23, 2017

You have cash in the bank, a monthly burn rate and a “cash out” date that few in the company truly comprehend. But if you work your entrepreneur network, talk with lawyers who do a ton of startup deals, ask existing investors, etc. The best VCs follow up but then so, too, to the best entrepreneurs.

Burn Rate 238

Burn Rate Term Sheet CTO Hire Fractional CTO 238

Startup Professionals Musings

JANUARY 7, 2014

Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. A variation on this theme is promising a burn rate to investors than you can’t deliver.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Steve Blank

FEBRUARY 22, 2010

Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. How do we finance the company, etc. Regardless of your type of business model you should be tracking cash burn rate, months of cash left, time to cash flow breakeven. Here’s why. Financials.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. We entrepreneurs have been spinning that line for decades in every boom cycle.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

Professor VC

APRIL 7, 2011

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. Ive seen a number of entrepreneurs, angels and VCs fall into the trap of providing debt in small pieces. In cases where it is truly a bridge financing (i.e.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Feld Thoughts

FEBRUARY 9, 2016

And, rather than rational and helpful thoughts for entrepreneurs, it often brings out the schadenfreude in even the most talented people. We entrepreneurs have been spinning that line for decades in every boom cycle. ” Many companies have hired ahead of their growth rate because they had the cash to do so. .”

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Steve Blank

JUNE 1, 2011

3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. What is the entrepreneur supposed to be doing? The Wrong Metrics.

Silicon Valley 290

Silicon Valley Business Model Venture Capital Balance Sheet 290

The Equity Kicker

APRIL 22, 2016

I won’t add to the volume of good posts saying that he’s right to point out that the unicorn financing market is entering a dangerous period where all manner of pressures and biases will cause people to behave badly and mistakenly put off adjusting to the new reality in late stage funding.

Burn Rate 60

Burn Rate IPO Valuation Mobile 60

Professor VC

SEPTEMBER 26, 2011

However, I have seen some blog posts posing the question about whether the same principles of valuing baseball players could be applied to entrepreneurs. I encourage entrepreneurs to give it a shot and let me know what you think. I also teach Entrepreneurial Finance at San Jose State. September 27, 2011 5:09 PM. Steve Bennet.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Steve Blank

JUNE 1, 2011

3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. What is the entrepreneur supposed to be doing? The Wrong Metrics.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

Up and Running

OCTOBER 1, 2014

Nelson has some tips: Know your burn rate. And this isn’t just for your business, but as many startup founders know, your personal finances can matter just as much (especially if you aren’t profitable yet). Five useful tools and an entrepreneur’s workspace. What helps a busy entrepreneur get work done?

Bootstrapping 107

Bootstrapping Cofounder Portland Burn Rate 107

Gust

DECEMBER 29, 2013

Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. A variation on this theme is promising a burn rate to investors than you can’t deliver.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Professor VC

APRIL 1, 2010

was part of a Dow Jones VentureWire webinar last week titled Negotiating An Angel Deal: What Angels, Entrepreneurs & VCs Need to Know. One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. Steve Bennet.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Professor VC

MARCH 10, 2009

In this economy, all entrepreneurs are going to hear a lot of "nos", but time spent going after customers rather than investors should provide a higher return on investment. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. ► July.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

Professor VC

JANUARY 27, 2008

The spring semester of my Entrepreneurial Finance class starts tomorrow. We will also look at a variety of financing methods including venture capital, angel investing, licensing, franchising, roll-up, venture debt and my old favorite, bootstrapping. Labels: entrepreneur , entrepreneurial finance course , venture capital.

San Jose 28

San Jose Technical Review Angel Investor Venture Capital 28

BeyondVC

DECEMBER 10, 2009

The other day I met with an entrepreneur I was advising as he prepared to raise his next round of funding. Secondly, what is most important for me to understand is the expenses and what milestones will be achieved with this first round of funding and whether or not it would be suitable enough to raise the next round of financing.

Churn Rate 112

Churn Rate Burn Rate Startup Metrics 112

Professor VC

NOVEMBER 19, 2009

At a high level, I definitely agree that being an entrepreneur and being in school dont necessarily mix. Most of us know of Exhibits 1 ( Bill Gates ) and 2 ( Mark Zuckerberg ) from Harvard, but I have met dozens of other successful entrepreneurs who felt a greater need to get going on an opportunity than to wait around to complete a degree.

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? What should our MRR growth be? Software as a Service (Saas) benchmarks.

B2C 141

B2C Technical Review Startup Retention 141

Professor VC

DECEMBER 18, 2008

The NIF (in its 5th year), is essentially a science fair for entrepreneurs. Here are a few of the budding entrepreneurs that I chatted with at the event: Jeff Gibboney, a graduate mechanical engineering student, developed a battery operated skateboard for cruising to school or work. Can Entrepreneurship Be Taught? ► October. (1).

San Jose 28

San Jose Silicon Valley Technical Review Angel Investor 28