VC Cafe
JULY 26, 2020
In fact, they were screaming at them to dramatically reduce their burn rates. The fundamentals (unit economics/ margins, CAC>LTV, the importance of retention) are more important now. Angel investment, which was small to start with, disappeared, and most corporate VCs shut down. It was a nuclear winter for startup capital.”
VC Cafe
NOVEMBER 2, 2019
In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. The main B2C benchmarks have to do with traction: growth in user acquisition, user retention/churn, monetisation, as well as the effectiveness of consumer marketing + virality. Consumer apps and services.
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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.
Both Sides of the Table
MAY 2, 2015
They can show the projections on what this does to burn rate. Stock option top-ups after a few years are vital retention mechanisms. They can help you understand gross margins and how to avoid signing bad deals. They can help you with pricing. Another thing entrepreneurs f**k up? Timing of cash payments.
Up and Running
OCTOBER 7, 2019
Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. Activation rate: measures how many visitors are engaging with your website or app.
Berkonomics
FEBRUARY 6, 2025
Monthly burn rate 4. Net revenue retention 5. There are only 5 metrics that truly matter in your first 18 months: Everything else is a distraction. Cash runway (in months) 2. Customer acquisition cost 3. Gross margin An example not to follow!
View from Seed
OCTOBER 15, 2014
Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. However, these are important updates for your board to know. You should also include a 1-2 sentence description of what’s happening.
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