Up and Running

OCTOBER 7, 2019

You need to use your time and resources productively by focusing on the right metrics so you can use data to help you implement improvements that matter. The first step is to formulate a KPI strategy by selecting the right metrics to track. The metrics should help you identify areas for improvement.

Founder 71

Founder Retention Metrics Technical Review 71

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. You will make mistakes.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

VC Cafe

JUNE 6, 2024

It’s not a surprise, given that entrepreneurs are obsessed with data and metrics, but in the conservative VC market of 2024, it feels even more important for founders to know what ‘good’ looks like and what investors expect. Metric Unremarkable Good Excellent Outlier ARR <$500k $500k-$1.5m $1.5m-$2.5m >$2.5m

B2B 97

B2B Burn Rate Generative AI Retention 97

The Startup Magazine

MAY 9, 2024

However, the pursuit of expanding their ideal customer profile (ICP) into uncharted territories where they had previously seen little to no success revealed the unsustainable nature of their growth and the misleading success metrics it generated. The end goal is delivering real value and building trust.

Burn Rate 88

Burn Rate Startup Bankruptcy Metrics 88

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. You will make mistakes.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. You will make mistakes.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Both Sides of the Table

FEBRUARY 15, 2016

This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?”

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

YoungUpstarts

JANUARY 11, 2018

When entrepreneurs are selling widely from the start and showing us vanity metrics, it’s clear that they haven’t found PMF and it’s a quick pass for us. When investment capital flows, companies often find themselves putting extreme growth above all other factors, creating high burn rates.

Los Angeles 133

Los Angeles Investment Bankers Cofounder Viral 133

David Cohen

MARCH 1, 2017

As an investor, I’m often asked what sort of burn rate is appropriate for a growing company. For SaaS companies in this situation, my rule of thumb for burn guidance is to have a one year ratio of net burn to net new MRR. Your $30K of net new MRR pays back this months burn over the next year.

.Net 94

.Net Burn Rate Cloud Metrics 94

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. You will make mistakes.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

The Equity Kicker

JULY 16, 2015

Companies with lots of cash sometimes add people more quickly, but that drives the burn rate up, often without a compensating increase in the chance of success. Start tracking key metrics and build a company dashboard. Operational activities to support growth.

eCommerce 60

eCommerce Burn Rate Early Stage Hiring 60

Berkonomics

JULY 1, 2021

I recently coached a CFO in a small company to urge the CEO to stop working upon the operational issues and focus upon the future, even if that meant a pivot to protect the business as the world was changing in that industry at an accelerated rate. What is the role of a chief financial officer in growing and protecting the company?

Balance Sheet 62

Balance Sheet Cofounder Cash Position Burn Rate 62

The Equity Kicker

JANUARY 10, 2020

It’s got a big burn rate, it’s too big to pivot, and it goes bust. And what are the metrics for customer love? And as you get bigger, NPS and engagement metrics start to become relevant: how frequently people come back to your site, how long they spend there, how much they talk about you on social media etc.

Partner 68

Partner Early Stage Portfolio Metrics 68

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. You will make mistakes.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

K9 Ventures

OCTOBER 12, 2015

That is because the venture capital industry operates in cycles. Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. Raise as much capital as you can, but watch your burn rate like a hawk.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

Steve Blank

SEPTEMBER 5, 2018

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. Some have labeled this period as irrational exuberance.

Lean 335

Lean Burn Rate Startup IPO 335

K9 Ventures

MAY 28, 2015

By carefully managing your burn rate and steadily growing revenue, you can now survive — almost forever. So it feels like they’re steadily increasing their revenue, keeping the operations running and things are going well. You busted your ass to get here and you deserve all the credit for it. But there-in lies the rub.

Revenue 48

Revenue Startup Burn Rate Cofounder 48

YoungUpstarts

JULY 31, 2019

Founders need seed capital to get their operations up and running, and to begin generating revenue. Compounding the problem, founders often ramp up expenses and their burn rate as they collect fundraising debt, always expecting better performance to be just around the corner, and being prepared for the next round. .

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

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. Layoffs have also become more prevalent. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Startup Professionals Musings

JULY 4, 2021

Productive processes start with a plan, and end with metrics that measure value delivered. Entrepreneurs and small business always operate on the edge. As an entrepreneur, you need a visible business plan and weekly team meetings, so everyone is working on current issues and real goals. Poor or too many business processes.

Startup 404

Startup Lean Metrics Matching 404

Startup Professionals Musings

AUGUST 14, 2015

Even non-profits require money to operate, so every startup needs a business model with plans to bring in income. Define metrics to keep on track for the journey. Common financial metrics include burn rate, gross margin, revenue growth and net profit. Calculate and manage your financials.

Elevator Pitch 120

Elevator Pitch Burn Rate Startup Metrics 120

Up and Running

MAY 22, 2018

Demonstrating to investors that you have a handle on key business metrics as they relate to your business model and forecast is essential. If you don’t want to get into the core of accounting, at least make sure you know and understand how to calculate the important financial metrics. The monthly cost of operating the business.

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90