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Startup Runway Length Depends on Your Burn Rate

Startup Professionals Musings

As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. The components are simple - expenses and income. Great strategy.

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High Burn Rates Result in Short Startup Runways

Startup Professionals Musings

As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Investors assume it will only go up with more funding. Great strategy.

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Don’t Get Burned By Your Startup Burn Rate

Startup Professionals Musings

As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Investors assume it will only go up with more funding. Great strategy.

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Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

Investors use a consulting CTO for technical due diligence. And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Why are consulting CTOs so scarce?

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How The IBM PC Made Me Appreciate Entrepreneurs

Startup Professionals Musings

Way back in the early eighties, I was privileged to be part of the original IBM PC development team, led by Don Estridge. I’ve often asked myself why intrapreneurs like Don Estridge and peers from CDC, Burroughs, UNIVAC, and Wang are not household names today. Compensation and support carried the corporate burden rate.

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How can startups engage with Google?

VC Cafe

There are four general buckets for engaging with a corporate like Google: Funding – this consists of cash investment for equity. Typically invest in series C and above, notable portfolio companies include Stripe, Lyft, Robinhood, UI Path, Snap, Duolingo and many more household names. Funding, M&A, Commercial, Support.

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Finding Your Co-Founders

techcrunch.com

In later posts I’ll get more specific on how to figure out if the folks you’re meeting are the right people to work with, and also how to deal with issues like splitting equity and paying yourselves before raising funding. Honestly assess your own strengths and weaknesses thoroughly. And how do you do this?