Both Sides of the Table

SEPTEMBER 29, 2009

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. There is no discussion of burn, runway, and more financing yet.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

David Teten

NOVEMBER 26, 2019

Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. Peter Nesbitt, VP of Finance at Teampay , said, “Forecasting is exceptionally challenging in practice, especially as end users drive an era of distributed spending.

Agile 60

Agile Management Forecast Silicon Valley 60

VC Adventure

MARCH 17, 2022

With the markets down significantly, financings (at least at the later stages) slowing down, and inflation and interest rates on the rise, perhaps now is a good time to talk about your burn rate. Hopefully, you took advantage of the robust financing markets of the past few years to put some money on your balance sheet.

Balance Sheet 121

Balance Sheet Burn Rate Valuation Metrics 121

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. This article previously appeared in TechCrunch.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. There is a relationship between time and money that is more complex than most managers think.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Up and Running

APRIL 30, 2020

Financing options: Can I get an emergency payroll loan? Each scenario combines the key numbers in the hypothetical case and explores the impact on the bottom line, and helps you define your cash burn rate and runway. What if it lasts six months? Does that impact your business? How does that impact the numbers?

Forecast 120

Forecast Balance Sheet Burn Rate Software Review 120

Mucker Lab

MAY 28, 2020

More and more investors have begun to shun high burn rates. The anxiety is growing so intense that CB Insights is now charging $6,895 for its own “List of Early-Stage Tech Startups Running Out of Cash (Dying).” To be clear, I’m not suggesting that you stockpile capital. Hoarding is not a solution to premature scaling.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

Up and Running

APRIL 22, 2020

They want to understand your burn rate and cash runway to see how likely you are to pay back the loan, and in a crisis, a hit in sales, revenue, and overall cash flow can help prove that you were affected by COVID-19. If you don’t qualify for an SBA Disaster Loan you may want to explore other funding options.

SBA 139

SBA Forecast Software Review Business Plan 139

Version One Ventures

MAY 31, 2016

that provide venture debt to a start-up often with the expectation that the start-up can pay back that debt with its next round of equity financing. It became increasingly risky to provide debt to companies that were growing quickly, but also had very high burn rates and sometimes unsustainably low gross margins.

Equity 60

Equity Finance Burn Rate Sales 60

Both Sides of the Table

MAY 2, 2015

A great finance leader is on top of your numbers with such precision that you don’t have to worry about it. But a great finance leader isn’t just budgeting but he or she is an consummate planning and they won’t take s**t from you about why you need to avoid hiring more staff until you close new contracts or raise money.

Operations 150

Operations Metrics Early Stage Non-Compete 150

ReadWriteStart

JULY 9, 2023

Pricing is something many founders struggle with because newbie entrepreneurs may set random prices for their product instead of calculating the proper numbers or calculating with finance professionals. When you get funding, you need to monitor the burn rate in order not to go bankrupt or understand if you need to raise more money.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

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

View from Seed

FEBRUARY 12, 2020

Sometimes, investors might get at this in more indirect ways like commenting about other financing rounds or casually throwing out a number and watching your reaction. The investor is trying to figure out whether there is likely to be a mismatch in expectations down the road around growth rate, burn rate, or the ultimate exit.

Term Sheet 364

Term Sheet Burn Rate Founder Partner 364

Feld Thoughts

SEPTEMBER 16, 2011

This resulted in an annualized burn rate more in the neighborhood of $55,200 ($4,600 * 12). However, Jane realized that $3430 associated with the new office space security deposit and rennovations is essentially a one-time expense.

Balance Sheet 125

Balance Sheet Fractional CTO Burn Rate Salary 125

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

Both Sides of the Table

FEBRUARY 6, 2017

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. So if funding from VCs slowed, valuations dropped and burn rates were slashed, WTF happened to winter again?

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

ithacaVC

OCTOBER 29, 2011

Here is the next iteration of Brad Feld’s Finance Friday’s. As one of my mentors has said over and over “it’s all about burn rate and fume date!!! As one of my mentors has said over and over “it’s all about burn rate and fume date!!!” Have a great weekend.

Revenue 49

Revenue Finance Burn Rate Forecast 49

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. What are the kinds of difficult tasks that need to be solved by boards?

LP 269

LP Startup Burn Rate Stock Options 269

The Next Web

DECEMBER 2, 2013

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. Suddenly, those multi-million dollar financing rounds that startups raise don’t seem so outrageous!

Cost 168

Cost San Francisco New York City Ruby 168

Up and Running

SEPTEMBER 17, 2014

This includes a general understanding of the finances. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

ReadWriteStart

JANUARY 27, 2011

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely. The business is already profitable with $2.9

Dilution 114

Dilution Revenue Finance Entrepreneur 114

View from Seed

OCTOBER 15, 2014

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Finance is mission critical, for instance – it just appears on a recurring basis.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

YoungUpstarts

MARCH 30, 2018

As the founder of your startup, you’re responsible for its finances. Though you can expect any startup to have a burn rate at first, it should lessen with each quarter. Many entrepreneurs take this to mean using their personal savings accounts to patch any holes in their professional budgets. Don’t follow their lead.

Silicon Valley 133

Silicon Valley San Francisco Founder Burn Rate 133

This is going to be BIG.

MARCH 1, 2010

It’s often some combination of the idea not being big enough to sustain a venture exit or the company just not being appropriate for venture financing. My company was not well executed enough to achieve venture capital financing—and that wasn’t the city’s fault, it was mine. I was there, too. They’re not “dumb Wall Street money”.

New York City 113

New York City New York Startup Burn Rate 113

Both Sides of the Table

JULY 13, 2013

I got a job at a bank, and I worked in their corporate finance group. We had a finance group for all of the bank branches based in San Diego, and I wrote programs to download stuff from the mainframe so we could do analysis three days faster than they could send us the data. Comp sci in the 80s was terrible.

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Startup Professionals Musings

DECEMBER 15, 2014

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. When you put your own financing on the line, your partners, your team, and eventually your customers will know that you are committed to solving their problem.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

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. You’ve kept a really low burn rate and paid yourself a very small salary.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. There is a relationship between time and money that is more complex than most managers think. Email readers continue here.]

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Up and Running

JUNE 18, 2013

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. Finance accounting entrepreneurship metrics projections startup' You can take LivePlan for a spin here.).

Metrics 79

Metrics Burn Rate .Net Finance 79

Startup Professionals Musings

JUNE 28, 2013

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. When you put your own financing on the line, your partners, your team, and eventually your customers will know that you are committed to solving their problem.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

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

Steve Blank

FEBRUARY 22, 2010

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. What’s the distribution channel? How do we price and position the product? How do we create end user demand? Who are our partners? Retained 90+/Total Actives %.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Gust

DECEMBER 7, 2014

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. When you put your own financing on the line, your partners, your team, and eventually your customers will know that you are committed to solving their problem.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Austin Startup

NOVEMBER 11, 2017

We had gathered total more than 250 feedbacks from killers in different domains (marketing, tech, product, finances…).We Evolution of the press release page seen by reporters Lesson 4: Cut your burn rate as quickly as you can Burn rate is essentially the rate at which your company is “burning” through its available cash.

Burn Rate 54

Burn Rate Product Cofounder PR 54

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. When you run a startup you’re always on borrowed time. I’ve never met a founder who wasn’t acutely aware of his or her ticking time bomb and the sense that failure and humiliation is a real possibility.

Burn Rate 238

Burn Rate Term Sheet CTO Hire Fractional CTO 238