Startup Professionals Musings
OCTOBER 16, 2023
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
Startup Professionals Musings
FEBRUARY 5, 2021
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
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Steve Blank
MARCH 17, 2020
The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month. What does your new business model look like? How do you know?
Startup Professionals Musings
JANUARY 4, 2015
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
ReadWriteStart
APRIL 26, 2011
MicroVentures does the due diligence for investors, running a variety of checks on financials, forecasts, use of funds, burn rate and so on. Everything is disclosed fully to potential investors, who make their investments in exchange for equity in the companies.
Startup Professionals Musings
DECEMBER 11, 2017
Calculate cash-burn rate and investment timing. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Be willing to give up 20 to 33 percent of your equity to support this. For credibility, market penetration within five years should be at least 5 percent.
Both Sides of the Table
OCTOBER 14, 2015
The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. ” It goes like this: What is your net burn rate? I put up this slide as part of my discussion. What is your cash balance? Some companies have to go first.
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