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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Burn Rate 383
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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer?

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Who are the Major Revenue-Based Investing VCs?

David Teten

Manuge continues, “Corl connects to a business’ bank accounts, accounting software, payment processors, and other digital services to collect 10,000+ historical data points that are analyzed in real-time. The majority of businesses that apply for funding with Corl are E-commerce, SaaS, and other digital businesses.” .

Revenue 60
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Don't forget to look at venture debt when raising a new round

BeyondVC

We all know the story – it is incredibly cheaper to start a web-based business versus 5 years ago with the rise of open source software and commodity servers. However, while getting started with thousands of users is cheap, scaling to significant numbers will require some dollars.

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Why Crunch Modes Doesn't Work: Six Lessons

www.igda.org

Ive spent 20 years developing and managing software projects. But, over time, I noticed that the productivity losses that result from working too many extra hours start taking a bigger toll faster than most software managers realize. Most software companies will fire an employee who routinely shows up drunk for work. Its ironic.