Steve Blank
NOVEMBER 2, 2009
The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. And most startup code and features end up on the floor as customers never really wanted them.
Both Sides of the Table
MAY 28, 2018
Founder: “$8–10 million” VC: “What’s your current burn rate?” VC: “So at a constant rate of burn rate you’d be raising enough for 2.5–3 Every VC wants to fund a deal that seems to have too much demand. Having too little demand leads to bankruptcy. Founder: “$250k / month.” Why are you raising so much?”
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Startup Professionals Musings
NOVEMBER 7, 2016
Like startup investors several layers deep, parent company executives often demand approval rights and exert their power, without understanding the issues of starting a new business. Compensation and support carried the corporate burden rate. The burn rate was extremely high, with no one working for equity or deferred compensation.
Startup Professionals Musings
SEPTEMBER 12, 2021
They can iterate and evolve their business idea with a low burn rate and minimal dependencies. Although the major crowd funding sites today, including Kickstarter and Indiegogo , don’t technically require a business plan, they do demand essentially the same information in a project format.
Startup Professionals Musings
NOVEMBER 7, 2014
They can iterate and evolve their business idea with a low burn rate and minimal dependencies. Although the major crowd funding sites today, including Kickstarter and Indiegogo , don’t technically require a business plan, they do demand essentially the same information in a project format.
YoungUpstarts
MAY 19, 2016
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? To become part of the surviving half, use these methods to ensure your startup’s structure stands strong. Read your books from cover to cover.
Steve Blank
SEPTEMBER 7, 2009
There isn’t a sales problem, the problem is that marketing just did not understand its customers and how to create demand or position the product. She quickly comes to the conclusion that the company’s positioning and marketing strategy were incorrect. Now the VP of Marketing starts sweating.
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