article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Many venture debt lines have “covenants” that restrict you from going below a certain amount of cash in the bank (in normal times they are more common – in better times they are less common).

Burn Rate 383
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. As a result, unfounded hockey-stick graphs and unicorn promises give way to financial fluency, realistic expectations, frank conversations about what a business can credibly achieve, and transparency. . Flexible VC: Compensation-based.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Community Comeback: 14 Ways Local Leaders Are Reshaping America

YoungUpstarts

They’re changing the conversation on who drives revitalization. Think of how the dashboard of a car shows gas, oil, engine performance, temperature, and so forth. Pensacola used a Covenant for the Community to guarantee that contractors would use local minorities in the revitalization of downtown. High school dropout rate?

America 100
article thumbnail

Why Crunch Modes Doesn't Work: Six Lessons

www.igda.org

In the aftermath of ea_spouse s post on LiveJournal, quality-of-life conversations in the game development business have taken on a new life and a new urgency. Prosperity Covenant , Tom Walker. Introduction. Ea_spouse received thousands of comments to her original post — followed quickly by major media coverage.