Startup Professionals Musings

FEBRUARY 21, 2012

As a rule, you need to review your burn rate every month, and manage it every day. Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

JANUARY 28, 2011

As a rule, you need to review your burn rate every month, and manage it every day. Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

FEBRUARY 5, 2010

As a rule, you need to review your burn rate every month, and manage it every day. Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 120

Burn Rate Startup Salary Equity 120

www.forentrepreneurs.com

FEBRUARY 2, 2010

It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. Examples of free products include Open Source software, services like HubSpot’s Website Grader , free versions of a SaaS service that have limited, but still valuable, feature sets, etc. have multiples that are more like 5 x CAC.)

Acquisition 103

Acquisition Cost Customer Entrepreneur 103