YoungUpstarts

MAY 19, 2016

Speaking intelligently about your company’s current (and future) performance means regular check-ins with your finances. Use burn rate as an example. If you don’t understand how much money your company is burning through each month, how can you expect to intelligently talk about your fiscal health?

Technical Review 124

Technical Review Burn Rate IP Intellectual Property 124

Steve Blank

SEPTEMBER 3, 2014

Speed keeps cash burn rate down while allowing you to converge on a repeatable and scalable business model. One interesting thing about the Lean Startup is that it teaches founders about Sales and Marketing (and a bit of finance) without making them get an MBA or a decade of sales experience.

Cofounder 336

Cofounder Founder Technical Cofounder Coder 336

Both Sides of the Table

SEPTEMBER 29, 2009

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

VC Cafe

NOVEMBER 2, 2019

In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. Other resources for benchmarking deep tech startups: European investment bank – financing the deep tech revolution SOSV – Deep tech investing 101 BCG – the dawn of the deep tech ecosystem.

B2C 141

B2C Technical Review Startup Retention 141

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. There is no discussion of burn, runway, and more financing yet.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

David Teten

NOVEMBER 26, 2019

Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. Peter Nesbitt, VP of Finance at Teampay , said, “Forecasting is exceptionally challenging in practice, especially as end users drive an era of distributed spending.

Agile 60

Agile Management Forecast Silicon Valley 60

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. This article previously appeared in TechCrunch.

Cram Down 413

Cram Down Founder Venture Capital Recapitalization 413

VC Adventure

MARCH 17, 2022

With the markets down significantly, financings (at least at the later stages) slowing down, and inflation and interest rates on the rise, perhaps now is a good time to talk about your burn rate. Hopefully, you took advantage of the robust financing markets of the past few years to put some money on your balance sheet.

Balance Sheet 121

Balance Sheet Burn Rate Valuation Metrics 121

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. There is a relationship between time and money that is more complex than most managers think.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Up and Running

APRIL 30, 2020

Financing options: Can I get an emergency payroll loan? Each scenario combines the key numbers in the hypothetical case and explores the impact on the bottom line, and helps you define your cash burn rate and runway. What if it lasts six months? Does that impact your business? How does that impact the numbers?

Forecast 120

Forecast Balance Sheet Burn Rate Software Review 120

Mucker Lab

MAY 28, 2020

More and more investors have begun to shun high burn rates. The anxiety is growing so intense that CB Insights is now charging $6,895 for its own “List of Early-Stage Tech Startups Running Out of Cash (Dying).” To be clear, I’m not suggesting that you stockpile capital. Hoarding is not a solution to premature scaling.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

Up and Running

APRIL 22, 2020

They want to understand your burn rate and cash runway to see how likely you are to pay back the loan, and in a crisis, a hit in sales, revenue, and overall cash flow can help prove that you were affected by COVID-19. If you don’t qualify for an SBA Disaster Loan you may want to explore other funding options.

SBA 139

SBA Forecast Software Review Business Plan 139

Version One Ventures

MAY 31, 2016

that provide venture debt to a start-up often with the expectation that the start-up can pay back that debt with its next round of equity financing. It became increasingly risky to provide debt to companies that were growing quickly, but also had very high burn rates and sometimes unsustainably low gross margins.

Equity 60

Equity Finance Burn Rate Sales 60

Both Sides of the Table

MAY 2, 2015

A great finance leader is on top of your numbers with such precision that you don’t have to worry about it. But a great finance leader isn’t just budgeting but he or she is an consummate planning and they won’t take s**t from you about why you need to avoid hiring more staff until you close new contracts or raise money.

Operations 150

Operations Metrics Early Stage Non-Compete 150

ReadWriteStart

JULY 9, 2023

Pricing is something many founders struggle with because newbie entrepreneurs may set random prices for their product instead of calculating the proper numbers or calculating with finance professionals. When you get funding, you need to monitor the burn rate in order not to go bankrupt or understand if you need to raise more money.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

Professor VC

JULY 22, 2009

The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. I also teach Entrepreneurial Finance at San Jose State. ProfessorVC. Steve Bennet.

Burn Rate 28

Burn Rate San Jose Silicon Valley Angel Investor 28

ReadWriteStart

APRIL 30, 2020

Many fail because they fail to keep their burn rate in check and then run out of investors who are willing to fund their operations. They treat their startup’s burn rate like it’s etched in stone. The latter group also tends to spend every waking moment in the pursuit of lining up new financing.

Burn Rate 107

Burn Rate Management Startup Early Stage 107

YoungUpstarts

JANUARY 9, 2017

by Tina Hay, founder and CEO of Napkin Finance. One of the most important factors in becoming a successful entrepreneur is managing finances. Estimate your monthly “burn rate.” If you’re headed down the road of disrupting an industry, check out the Napkin Finance advice for starting a startup. .

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

View from Seed

FEBRUARY 12, 2020

Sometimes, investors might get at this in more indirect ways like commenting about other financing rounds or casually throwing out a number and watching your reaction. The investor is trying to figure out whether there is likely to be a mismatch in expectations down the road around growth rate, burn rate, or the ultimate exit.

Term Sheet 364

Term Sheet Burn Rate Founder Partner 364

Feld Thoughts

SEPTEMBER 16, 2011

This resulted in an annualized burn rate more in the neighborhood of $55,200 ($4,600 * 12). However, Jane realized that $3430 associated with the new office space security deposit and rennovations is essentially a one-time expense.

Balance Sheet 125

Balance Sheet Fractional CTO Burn Rate Salary 125

Both Sides of the Table

FEBRUARY 4, 2016

.” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Genuine VC

FEBRUARY 9, 2011

The timing of the last round is also important - the closer you are to joining a company in conjunction with a financing event, the more recently validated it is by a professional investor – but also the value of your financial upside is less. What is the burn rate and how much cash is in the bank now?

Startup 146

Startup Burn Rate Technical Review Down Round 146

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. Some have argued that each of these companies would already be public in a prior era.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Both Sides of the Table

FEBRUARY 6, 2017

This past year was also the year that startup boards also got more disciplined about containing burn rates and pushing for companies to be run more pragmatically. So if funding from VCs slowed, valuations dropped and burn rates were slashed, WTF happened to winter again?

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Both Sides of the Table

AUGUST 9, 2011

Finance where needed. Companies raised too much money in 2005-08 and had high burn rates. We thought the following: No new deals close until we figure out WTF is going on with the market. We need some visibility. Let’s review all of our existing investments. Let’s make sure each has enough cash. Cut where needed.

Stock 305

Stock Technical Review Marketing Greece 305

ithacaVC

OCTOBER 29, 2011

Here is the next iteration of Brad Feld’s Finance Friday’s. As one of my mentors has said over and over “it’s all about burn rate and fume date!!! As one of my mentors has said over and over “it’s all about burn rate and fume date!!!” Have a great weekend.

Revenue 49

Revenue Finance Burn Rate Forecast 49

techcrunch.com

FEBRUARY 26, 2013

He knows how to advise entrepreneurs on hiring/firing, running teams, managing funding, when/how to control burn rate, and making other tough management decisions in the real environment of startups. In contrast to this personal view of an ideal board, many boards are often polite and agreeable, in many cases to a fault.

Burn Rate 87

Burn Rate Hiring Engineer Entrepreneur 87

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. What are the kinds of difficult tasks that need to be solved by boards?

LP 269

LP Startup Burn Rate Stock Options 269

The Next Web

DECEMBER 2, 2013

Considering Facebook’s scale, the company is now in the business of operating power plants to operate its servers, therefore, Schippers estimates that Facebook has a $30 million dollar monthly burn rate just for hosting. Suddenly, those multi-million dollar financing rounds that startups raise don’t seem so outrageous!

Cost 168

Cost San Francisco New York City Ruby 168

Up and Running

SEPTEMBER 17, 2014

This includes a general understanding of the finances. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

ReadWriteStart

JANUARY 27, 2011

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely. The business is already profitable with $2.9

Dilution 114

Dilution Revenue Finance Entrepreneur 114

This is going to be BIG.

MARCH 1, 2010

It’s often some combination of the idea not being big enough to sustain a venture exit or the company just not being appropriate for venture financing. My company was not well executed enough to achieve venture capital financing—and that wasn’t the city’s fault, it was mine. I was there, too. They’re not “dumb Wall Street money”.

New York City 120

New York City New York Startup Burn Rate 120

Version One Ventures

JANUARY 28, 2013

Seed financing grew from 89 fundings in Q1 2009 to more than 500 in Q3 2012. That means there are a lot more seeded startups out there: an excess demand for a limited supply of Series A financings. As an example, Version One has more than 50% of its funds reserved for follow-on financing. Do your homework on potential investors.

Burn Rate 140

Burn Rate San Francisco Vesting Finance 140

View from Seed

OCTOBER 15, 2014

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Finance is mission critical, for instance – it just appears on a recurring basis.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

YoungUpstarts

MARCH 30, 2018

As the founder of your startup, you’re responsible for its finances. Though you can expect any startup to have a burn rate at first, it should lessen with each quarter. Many entrepreneurs take this to mean using their personal savings accounts to patch any holes in their professional budgets. Don’t follow their lead.

Silicon Valley 133

Silicon Valley San Francisco Founder Burn Rate 133

Both Sides of the Table

JULY 13, 2013

I got a job at a bank, and I worked in their corporate finance group. We had a finance group for all of the bank branches based in San Diego, and I wrote programs to download stuff from the mainframe so we could do analysis three days faster than they could send us the data. Comp sci in the 80s was terrible.

Cofounder 337

Cofounder Technical Cofounder Startup San Diego 337