Remove Down Round Remove Revenue Remove Software Review Remove Venture Capital
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Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. As a result I had to do a down round. We will continue to do more of this.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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
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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

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. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming. Government programs.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. New investors hate down rounds. It’s what I love about entrepreneurship and about venture capital.

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How the pre-seed round made a comeback in 2024

VC Cafe

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size?

Valuation 186
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Grow or Die – - Revenue growth must be the core strategy and drive all other strategies.

Scalable Startup

And by growth I mean revenue growth. Flat to negative revenue growth is a real red flag, especially for early stage companies. If you’re venture funded, things get kind of ugly -unhappy board members, cut off from communications, down- rounds to keep you going, or no more funding. And protection form death.

Revenue 22
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Take Five – how shut are the venture markets right now?

VC Cafe

For the past few week I’ve been sharing here the impact of the current downturn that started in the public markets on startups and venture capital. It’s becoming evident that there’s a slow down in VC investments in Q2 deal activity, but it’s not as drastic as in the early days of the pandemic.

Valuation 151