Burn Rate Lean Metrics 
Steve Blank
SEPTEMBER 5, 2018
It’s the antithesis of the Lean Startup. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money.
YoungUpstarts
AUGUST 31, 2019
Start Lean. As tempting as it can be to do everything at once, be patient and start lean. . Building a lean business with lean products ensures you don’t pigeon-hole yourself into a situation where you’re unable to back your way out. Keep Cash Burn Low. The first step is to calculate your burn rate.
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View from Seed
OCTOBER 24, 2019
As a first time founder, having a few million dollars in the bank after a successful seed raise may seem like a huge amount of capital, and it’s easy to lose discipline around your burn rate. Unlike in B2B, you don’t necessarily want to use a second-seed round to get to metrics that every investor will appreciate.
Feld Thoughts
NOVEMBER 18, 2013
They need to raise money before building anything substantial after determining that they needed a little dough to follow the Lean Startup methodology. Three months in, the burn is now at $70k/month. No updates, screen comps, or metrics have been publicly shared yet. It’s too early for that s**t.
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. Know what the success metrics are for the launch. The Lean Startup Intensive is tomorrow at Web 2.0. Amazing lean startup resources Is Entrepreneurship a Management Science?
Startup Lessons Learned
MARCH 27, 2009
In lean times, it’s most important to focus on cutting costs in ways that speed you up, not slow you down. To increase the number of iterations you have left, you can either increase cash on hand (by raising money or increasing revenues), reduce burn rate, or increase the speed of each iteration. Work in small batches.
Startup Professionals Musings
JULY 4, 2021
Waste in a startup is any activity that burns resources, but creates no value or competitive advantage in the eyes of customers. Much has been written about this subject in the world of manufacturing, stemming primarily from the 1990’s work by Taiichi Ohno, called the Toyota Production System (“Lean”).
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