Both Sides of the Table
SEPTEMBER 28, 2014
Gross burn is the total amount of money you are spending per month. Net burn is the amount of money you are losing per month. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Startup Lessons'
Both Sides of the Table
SEPTEMBER 25, 2010
Taking it from an investor perspective (not me, angels) I think it’s totally unfair to see early angels invest, take more risk, help you get to the next level through both sweat & money, and then pay a higher price because the round had a convertible note with no cap. That’s OK, but it gives you a max (read: price!)
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Both Sides of the Table
JUNE 5, 2015
In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. I stopped the negotiation confusion years ago.
Both Sides of the Table
FEBRUARY 15, 2016
Some companies may be able to become “cockroaches” or “ramen profitable” but cutting costs and staff substantially and getting to a burn rate that last 2 years. Cut burn enough that you can eventually “grow into” your valuation; or. .”). They may push you to cut costs.
Both Sides of the Table
JULY 25, 2010
It is clearly a ploy by hotels to cut costs but it also benefits the environment. We all want to think that we’re unique and original thinkers but we’re far more guided by others than we think. In the book he talks about movement over the past decade to get us to reuse our towels more when we stay at hotels.
Lightspeed Venture Partners
OCTOBER 7, 2012
As he said, “Great innovations solve problems or reduce costs. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.
Agile VC
APRIL 17, 2011
Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Post-money valuation probably no higher than $12M (2). round closed in June 2004. Series A-1 Preferred.
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