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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. 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.

Burn Rate 383
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Sustaining Innovation vs. Disruptive Innovation

YoungUpstarts

An example of sustaining innovation is Pfizer, the world’s biggest pharmaceutical company by revenues. There are different types of disruptive innovations, according to Christensen: Low-end disruptions involve a new operating and/or financial approach with some combination of lower gross profit margins and higher asset utilization.

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Transcript of How Reducing Friction Increases Revenue

Duct Tape Marketing

Transcript of How Reducing Friction Increases Revenue written by John Jantsch read more at Duct Tape Marketing. Back in 1997, Jeff Bezos was talking about frictionless shopping when most companies were just thinking about getting serious about being online. They may not even realize that their shopping cart is hard to operate.

Revenue 57
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Sustaining Innovation vs. Disruptive Innovation

The Startup Magazine

An example of sustaining innovation is Pfizer, the world’s biggest pharmaceutical company by revenues. Low-end disruptions involve a new operating and/or financial approach with some combination of lower gross profit margins and higher asset utilization. And they have the resources to win. Types of Disruptive Innovation.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class.

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How AI And Big Data Are Changing Century-Old Media Companies

YoungUpstarts

It has stood behind its paywall since 1997, trusting that customers interested in its content would pay upwards of $200 a year for it. The prediction model gives the website’s sales and marketing teams information they can use to target different groups of registered users with different digital subscription packages.

Media 180
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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

Freeloader — On $3m invested, sold for $38m in 1996 — shut down in 1997. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. Support.com — On 2.5m invested, IPO’ed in 2000 for $32/share — stock price now $2.

IPO 240