David Teten

NOVEMBER 26, 2019

Instead of budget approvals, monitor key metrics and give managers more flexibility. How should a growth company manage their budget? So here’s the solution I have recommended to some of my portfolio companies: “ agile budgeting ”, i.e., monitoring a few key variables while giving managers significant flexibility.

Agile 60

Agile Management Forecast Silicon Valley 60

Berkonomics

OCTOBER 5, 2023

But first… There is a relationship between time and money that is more complex than most managers think. Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. The art of good management. How about young or pre-revenue companies?

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Genuine VC

FEBRUARY 9, 2011

Employee count is the strongest (but not a perfect) proxy for management’s and investors’ outlook on the business. What is the burn rate and how much cash is in the bank now? a founding CEO stepping aside to make room for professional management could be an indicator of successful growth).

Startup 146

Startup Burn Rate Technical Review Down Round 146

Up and Running

APRIL 22, 2020

If you lack an obvious history of responsible debt management, try to start building that up by applying for smaller lines of credit and assuring that you regularly pay it off. Cash flow management is important at any time, and basically provides a snapshot of the health of your business. Poor cash flow. Risky industry.

SBA 139

SBA Forecast Software Review Business Plan 139

Berkonomics

AUGUST 10, 2017

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

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Berkonomics

MARCH 30, 2010

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

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Both Sides of the Table

MAY 2, 2015

For a well-funded seed company I have controversially recommended hiring a great office manager that doubles as an administrative assistant. A great finance leader is on top of your numbers with such precision that you don’t have to worry about it. They can show the projections on what this does to burn rate.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Up and Running

APRIL 30, 2020

” It’s been a favorite management tool of mine since my time as VP for a market research firm, and it’s a method I used for decades growing a software company from zero to well over $10 million in annual sales. Financing options: Can I get an emergency payroll loan? You have to have good numbers to optimize your management.

Forecast 120

Forecast Balance Sheet Burn Rate Software Review 120

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. Those advisors don’t make decisions for management. The board members were nice, friendly cheerleaders.

Burn Rate 87

Burn Rate Hiring Engineer Entrepreneur 87

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. You’ve kept a really low burn rate and paid yourself a very small salary.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

VC Cafe

FEBRUARY 6, 2011

Not literally, but one big surprise to me was that in the 40 odd investor meetings I had, I managed to open the deck probably only 5-10 times. R&D outside SV is normally cheaper, so it helps you keeping your burn rate low. You only have one chance at a first impression. Get your deck to 10 slides and then throw it away.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

Mucker Lab

MAY 28, 2020

This post originally appeared in TechCrunch back in 2015, written by our co-founder and managing partner Erik Rannala. More and more investors have begun to shun high burn rates. We believe the message applies as much today as it did in 2015 when it was published. --. To be clear, I’m not suggesting that you stockpile capital.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

Steve Blank

FEBRUARY 22, 2010

Managing the Business. How do we finance the company, etc. Regardless of your type of business model you should be tracking cash burn rate, months of cash left, time to cash flow breakeven. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success.

Balance Sheet 307

Balance Sheet Startup Burn Rate Metrics 307

Startup Professionals Musings

DECEMBER 15, 2014

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. Managing investors is a distraction from your core business. You will squeeze harder on your own dollars than investor dollars. Sometimes survival requires staying under the radar.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Startup Professionals Musings

JUNE 28, 2013

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. Managing investors is a distraction from your core business. You will squeeze harder on your own dollars than investor dollars. Sometimes survival requires staying under the radar.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

Steve Blank

JUNE 1, 2011

3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. There are no standards for what each side (board versus management) does.

Silicon Valley 300

Silicon Valley Business Model Venture Capital Balance Sheet 300

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

Steve Blank

JUNE 1, 2011

3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. There are no standards for what each side (board versus management) does.

Silicon Valley 273

Silicon Valley Business Model Venture Capital Balance Sheet 273

Startup Professionals Musings

NOVEMBER 28, 2012

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Let your accountants manage the expenses. A variation on this theme is promising a burn rate to investors than you can’t deliver. Do not delegate this task.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Startup Professionals Musings

JANUARY 7, 2014

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Let your accountants manage the expenses. A variation on this theme is promising a burn rate to investors than you can’t deliver. Do not delegate this task.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Professor VC

NOVEMBER 14, 2011

and an investor in Right Side Capital Management (RSCM). I am curious about the rise of kickstarter type intermediaries who can manage the investment process and potentially make a single investment in a start-up. in fees is a hefty transaction fee considering company will still have legal and other fees on the financing.

SEC 54

SEC San Jose Angel Investor Accredited Investor 54

Up and Running

SEPTEMBER 17, 2014

You need to know when your company will start making money to know how to manage the money you have in the bank. 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. No Specific Metric.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

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

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

Gust

DECEMBER 7, 2014

Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. Managing investors is a distraction from your core business. You will squeeze harder on your own dollars than investor dollars. Sometimes survival requires staying under the radar.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

www.chubbybrain.com

SEPTEMBER 28, 2011

It’s a pain to manage payroll, unemployment, insurance, etc in one state. It’s a freaking nightmare to manage in three states (well, two states and a district), even though we paid a payroll service to take care of it. Nearly everyone thinks they can give good management tips. Finances were just one part of the story.

Software Review 79

Software Review Startup Technical Review Vesting 79

philipsmith.typepad.com

SEPTEMBER 24, 2011

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. Posted by Philip Smith on January 23, 2010 at 02:55 PM in Business Management , Fundraising , Getting going. , Business Management. February 2011.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

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

Professor VC

SEPTEMBER 26, 2011

Ive written previously about Right Side Capital Management (RCSM) , the latest in my post earlier this year, " How Much Diligence is Due. " (Full disclosure: I am an investor and adviser in RCSM.) I also teach Entrepreneurial Finance at San Jose State. Well, I think I know the guys that can do it! Can Entrepreneurship Be Taught?

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

APRIL 7, 2011

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. This can make it much more difficult to get any bank financing, new investment, and trade credit. In cases where it is truly a bridge financing (i.e. Steve Bennet. at 1:33 PM.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Gust

DECEMBER 29, 2013

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Let your accountants manage the expenses. A variation on this theme is promising a burn rate to investors than you can’t deliver. Do not delegate this task.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Professor VC

JANUARY 27, 2011

If you want to skip to the end of the story, I ended up becoming an adviser and investing in the management company. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

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

Both Sides of the Table

MARCH 30, 2016

Our business continued to succeed and fortunately the management team agreed to keep their eyes on the ball of running the company while Mark and the board focused on investors. We had grown into a more reasonable burn rate so raising capital meant we would have many years of cash on the balance sheet.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Professor VC

MARCH 10, 2009

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). ► July. (1).

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. Labels: Angel Investors , fundraising , term sheets , venture capital , venture financing. I also teach Entrepreneurial Finance at San Jose State.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Professor VC

JANUARY 27, 2008

The spring semester of my Entrepreneurial Finance class starts tomorrow. We will also look at a variety of financing methods including venture capital, angel investing, licensing, franchising, roll-up, venture debt and my old favorite, bootstrapping. Labels: entrepreneur , entrepreneurial finance course , venture capital.

San Jose 28

San Jose Technical Review Angel Investor Venture Capital 28