Both Sides of the Table

SEPTEMBER 28, 2014

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. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Instead of funding, you pay the investors a structured royalty, which is a portion of the sales. Reasons for funding. ? Royalty based investment. Crowdfunding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! New investors hate down rounds. Huge structural under-employment in much of the country and full employment in some niche tech markets where it’s impossible to hire developers, designers or sales professionals. If you are interested the Vimeo is here.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

NOVEMBER 2, 2009

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. Over its lifetime a Lean Startup may spend less money than a traditional startup.

Lean 244

Lean Silicon Valley Startup RSS 244

The Equity Kicker

JANUARY 22, 2014

To meet growth and revenue targets, you hire and spend like never before. A few quarters in, you realize that product/market fit is not quite there, or you’re not as far up the sales learning curve as you thought, or your LTV/CAC is suddenly in the toilet. You rush a few key hires, overbuild the team, ramp marketing spend.

Venture Capital 102

Venture Capital Down Round Valuation Lean 102

Both Sides of the Table

MARCH 30, 2016

forward sales with some as high as 12x sales. Collectively we chose growth and the market was rewarding high growth rates over any other factor so we felt that we ought to bring in an experienced CEO who had taken companies public, who had led large, international sales organizations and who was poised to take Invoca to the next level.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Reid Hoffman

JUNE 8, 2021

We can either try to step forward and be progressive and really try to lean forward, or we can get dragged in the future. At the time, they said, it’s not enough to design a product that’s good for sales, it must also be good for the environment. But now our hosts are really angry, and they have a huge revenue shortfall.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69