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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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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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It’s Morning in Venture Capital

Both Sides of the Table

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. If you want to understand the details of why this is, I covered it in detail in this post, Understanding Changes in the Software Industry.

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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. A key to disruptive innovation is that, opposed to sustaining innovation, it does not take place with established competitors , as Christensen explains in Harvard Business Review. And they have the resources to win.

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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. Customers flocked to Apple, and the company had record-breaking profits with its hardware, software and service. And they have the resources to win. But the real innovation was making downloading digital music easy.