Startup Professionals Musings

FEBRUARY 17, 2021

It wasn’t so many years ago that starting a new e-commerce business on the Internet was a complex custom development project, usually costing a million dollars or more. These steps alone can reduce your monthly burn rate by at least $10K. A programmer can build a new smartphone app for a few thousand dollars.

Cost 405

Cost Entrepreneur Burn Rate Social Media 405

Startup Lessons Learned

MARCH 27, 2009

The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). Were talking PayPal -sized variations.

San Francisco 117

San Francisco Lean Continuous Deployment DC 117

Mucker Lab

MAY 28, 2020

Compass.co, a benchmarking and research service, analyzed 3,200 internet startups and found that 74 percent “fail due to premature scaling.” More and more investors have begun to shun high burn rates. Startups flush with cash often do the opposite – they jump out of the plane, and then test the parachute as they free fall.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

VC Cafe

FEBRUARY 6, 2011

R&D outside SV is normally cheaper, so it helps you keeping your burn rate low. Jeff Clavier, Seed stage investor in 90+ consumer internet startups, said: We all have a different approach to non Silicon Valley opportunities. And what do the investors think? And what do the investors think?

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

Startup Professionals Musings

JUNE 18, 2012

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Cost 255

Cost SEM Burn Rate Startup 255

Startup Professionals Musings

JULY 27, 2014

It wasn’t so many years ago that starting a new e-commerce business on the Internet was a complex custom development project, usually costing a million dollars or more. These steps alone can reduce your monthly burn rate by at least $10K. A programmer can build a new smartphone app for a few thousand dollars. Martin Zwilling.

Entrepreneur 260

Entrepreneur Burn Rate Social Media LLC 260

Startup Lessons Learned

MARCH 13, 2009

And even worse, wed cranked up the burn rate in order to be ready to handle all those millions of mainstream customers we anticipated. Here was our experience at IMVU, which I have seen replicated at many other consumer internet startups. When they failed to materialize, the company was in big trouble.

San Francisco 168

San Francisco PR Lean Early Stage 168

Steve Blank

JUNE 1, 2011

The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. While that’s great when you showed up in your horse and buggy, the strategy-to-tactic-to implementation lag is painful at Internet speeds. Not Real-time. Startup board meetings occur every 4-6 weeks.

Silicon Valley 300

Silicon Valley Business Model Venture Capital Balance Sheet 300

Startup Professionals Musings

FEBRUARY 15, 2011

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Entrepreneur 235

Entrepreneur SEM Burn Rate Social Network 235

Steve Blank

JUNE 1, 2011

The only numbers in those documents that are important in the first year of a startup’s life are burn rate and cash balance. While that’s great when you showed up in your horse and buggy, the strategy-to-tactic-to implementation lag is painful at Internet speeds. Not Real-time. Startup board meetings occur every 4-6 weeks.

Silicon Valley 273

Silicon Valley Business Model Venture Capital Balance Sheet 273

Both Sides of the Table

APRIL 23, 2011

In the late 90’s he saw the internet boom and helped start IronPlanet.com, a construction equipment marketplace that is nearing an IPO. At the time consumer internet venture capital was still suffering from the collapse of the Tech Bubble. The in invest in IT (Software + Internet + Healthcare). 40:30 –41:30). 41:30-42:00).

Vertical 265

Vertical Curation Boston Burn Rate 265

Both Sides of the Table

JUNE 17, 2017

They don’t want high burn rates but they will never fund slow growth. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). This is precisely why large Internet categories often produce “winner takes most” outcomes.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Burn Rate 148

Burn Rate Startup Revenue Valuation 148

Professor VC

NOVEMBER 14, 2011

I wont go into the details of the bill, but at a high level, it allows entrepreneurs to raise funds over the Internet up to a maximum of $1M annually (or $2M with audited financials). In theory, this sounds like a great idea. However, in practice, this will be very bad. I like the way you are thinking, but not true! ► October. (1).

SEC 54

SEC San Jose Angel Investor Accredited Investor 54

Gust

JUNE 10, 2012

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

Cost 139

Cost SEM Burn Rate Startup 139

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. TechCrunch A premier network of technology, startup and internet-related sites. The second example came along just this morning. A must read! startupcto

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

www.chubbybrain.com

SEPTEMBER 28, 2011

Thin line between life and death of internet service is a number of users. Title: The Leap: A Memoir of Love and Madness in the Internet Gold Rush. Title: Burn Rate: How I Survived the Gold Rush Years on the Internet. Also its a good idea to have separate spaces so you’ll have some work/life balance.

Software Review 79

Software Review Startup Technical Review Vesting 79

Startup Professionals Musings

FEBRUARY 13, 2010

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Technology costs.

SEM 125

SEM Burn Rate Social Network Angel Investor 125

abovethecrowd.com

FEBRUARY 24, 2015

Companies are taking on huge burn rates to justify spending the capital they are raising in these enormous financings, putting their long-term viability in jeopardy. ” Finance Internet Uncategorized Venture Capital Web/Tech Investing IPO late-stage valuation' We are in a risk bubble.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

abovethecrowd.com

APRIL 20, 2016

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. The same thing happened to many Internet stocks.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Startup Professionals Musings

JULY 24, 2017

The longer you wait to start your own business, the higher the default burn rate, and the less happy you will be to take a financial step down. In a startup, you can’t afford to spend the time or the money for out-house training, so self-learning from the Internet and unpaid advisors is the norm.

Salary 147

Salary Burn Rate Vertical Equity 147

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. ProfessorVC. The last blogger in Silicon Valley. Wednesday, July 22, 2009. Steve Bennet.

Burn Rate 28

Burn Rate Silicon Valley San Jose Angel Investor 28

Startup Professionals Musings

APRIL 23, 2016

Here are my top ten tips to get the best ones interested in you, as well as deciding if the entrepreneurial fit is right for you: Optimize visibility and image on the Internet. How you manage your “personal brand” on the Internet is indicative of an ability to manage a startup brand later.

Startup 120

Startup Burn Rate Cofounder Internet 120

YoungUpstarts

JUNE 17, 2019

Startups are regarded for their embrace of industry disruption, all the while constantly trying to limit their burn rate and conserving their capital for future growth. Marketing: startup style. Marketing for startups means marketing for efficiency.

Marketing 147

Marketing Startup Burn Rate Advertising 147

Startup Professionals Musings

MARCH 28, 2016

While the CFO usually takes the lead in finding professional investors, everyone needs to look for ways to reduce the burn rate and maximize alternative funding sources, including bartering for services, finding partners willing to accept deferred payments and talking to friends and family. Finding creative ways to fund activities.

Entrepreneur 120

Entrepreneur Burn Rate Leadership Salary 120

Both Sides of the Table

MARCH 30, 2016

We had grown into a more reasonable burn rate so raising capital meant we would have many years of cash on the balance sheet. Some startups will get ahead of the difficult task of attracting capital in markets with more scrutiny and will adjust burn-rates, growth rates and prices.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

ReadWriteStart

JUNE 13, 2011

The only numbers in those documents that are important in the first year of a startup's life are burn rate and cash balance. While that's great when you showed up in your horse and buggy, the strategy-to-tactic-to implementation lag is painful at Internet speeds. Not Real-time : Startup board meetings occur every 4-6 weeks.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

ReadWriteStart

JANUARY 27, 2011

I suspect Ryan is keener on building a consumer Internet play, but my business experience says this would do better as an add-on residing on the sites of other retailers. Jeff has managed to keep his burn rate very low thus far, and a slow and steady crafting of the business is working nicely.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Burn Rate 78

Burn Rate Startup Revenue Valuation 78

Professor VC

FEBRUARY 26, 2008

Jeff founded StubHub during the dotcom bust and funding for consumer Internet companies was disappearing rapidly. He definitely had a lot of people tell him that it couldnt be done. Go with Your Gut - This certainly goes hand in hand with challenging the status quo. Can Entrepreneurship Be Taught? ► October. (1). ► September. (1).

Technical Review 28

Technical Review San Jose Angel Investor Silicon Valley 28

Professor VC

DECEMBER 18, 2008

Unforgettable treasures will provide micro-loans to third world crafts artists to enable them to build their business and will also market their wares through the Internet. She has developed a new twist on the micro-lending concept. She is planning on starting the business upon graduation. Can Entrepreneurship Be Taught? ► October. (1).

Silicon Valley 28

Silicon Valley San Jose Technical Review Angel Investor 28

Professor VC

JANUARY 17, 2008

All recommend this program to effectively advertise on the Internet, this is the best program! Labels: angel groups , valuation. 1 comment: Anonymous said. Who knows where to download XRumer 5.0 Help, please. November 22, 2009 2:03 AM. Post a Comment. Newer Post. Older Post. Subscribe to: Post Comments (Atom). Twitter Updates. Blog Archive.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Turns out that many of the highest-usage consumer Internet companies also have the thinnest and least monetizable engagement, which is a big disincentive for investors.

Startup 60

Startup Burn Rate Revenue Internet 60

pandodaily.com

JULY 18, 2012

While a 21-year-old with no mortgage, no girlfriend and a low-burn rate may have nothing to lose, a 40-year old with a career, a mortgage and kids has everything to lose. I am the 46 year old father of a 3 year old and a 5 year old starting a company based on my 25 years in marketing and 17 years in Internet technologies and marketing.

Entrepreneur 45

Entrepreneur San Francisco Silicon Valley Technical Review 45

The Equity Kicker

APRIL 22, 2016

In 2014-2015 the unicorn market was over-funded, sparking intense competition, high burn rates, and as we are starting to see now, ultimately damaging returns. Most everything that moved from the internet to mobile looked like this, and was hard to make money from as a result. This threatens returns for all involved.

Burn Rate 60

Burn Rate IPO Valuation Mobile 60

Mucker Lab

MARCH 8, 2016

We’ve been doing Internet stuff our whole careers, since the graphical web became a mass-market, commercial medium in the 1990s. How can we tell founders to stay lean, keep focused on their customers, and keep burn rates low if we cannot walk the talk and eat our own dog food? We’ve ridden the ups and downs of economic cycles.

Burn Rate 60

Burn Rate Limited Partner Bootstrapping Portfolio 60

VC Cafe

APRIL 27, 2011

VCs should aim to provide comprehensive data to their portcos on industry benchmarks, burn rates, market research, competitive analysis, etc. Be a data source – the data flow between a VC and a startup doesn’t have to be one-sided. Regardless of if you plan on investing in a startup, honest feedback is important.

Venture Capital 90

Venture Capital Differentiation Incubator Angel Investor 90