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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Your goal is to invest in engineering (to maintain your product lead), new offices / locations (to capture markets before others), marketing (to capture consumer attention before others do) … all of these activities consume cash often in advance of the revenue they generate. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Board seat, typically retained until company exit. Cash collateral. Minimum requirements.

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The Community Comeback: 14 Ways Local Leaders Are Reshaping America

YoungUpstarts

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. They need to see all of them together and updated regularly. High school dropout rate?

America 100
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Why Crunch Modes Doesn't Work: Six Lessons

www.igda.org

As I dug around, I was stunned to discover that I was hardly the first one to figure this out: my observations have been common knowledge among industrial engineers for almost a century. Prosperity Covenant , Tom Walker. This conviction of Abbe still seems to hold true after millions of experiments over the whole globe.

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The need for a board grows with complexity

Berkonomics

Bank loans with restrictive covenants are taken on. I engineered the extraction of the outside investors, even at a near total loss. The operations of the corporation become more complex. Ownership is spread among several classes of investors. The number of employees grows. It was the final nail for me.