Both Sides of the Table

NOVEMBER 3, 2009

That died with waterfall software development. Let’s take your revenue line. If you’re a consumer destination the revenue and COGS lines should tell me about how big your funnel is, how you fill the top end of the pipe and what your conversion rates will be. Ditto for enterprise software companies.

Business Plan 334

Business Plan AJAX Venture Capital Technical Review 334

Steve Blank

NOVEMBER 2, 2009

And I can even imagine cases where it might burn more cash than a traditional startup. The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship.

Lean 263

Lean Silicon Valley Startup RSS 263

Startup Professionals Musings

SEPTEMBER 14, 2016

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. Cash flow out equates to burn rate, and the runway depends on your reserves.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

VC Cafe

JULY 26, 2020

In fact, they were screaming at them to dramatically reduce their burn rates. In a capital scarce environment following the Dot Com crash, startups needed to do more with less and survive long enough to generate revenue. It was a nuclear winter for startup capital.” ” Steve Blank, “Is the lean startup dead?”

Lean 214

Lean Seed Capital Startup Burn Rate 214

Berkonomics

OCTOBER 5, 2023

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. How about young or pre-revenue companies?

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Up and Running

APRIL 22, 2020

This does not mean that you need 2-3 years’ worth of documents showcasing your revenue and cost of goods sold, but you’ll likely need reports that show at least 12-months of financial activity. Many startups are small, local businesses with hopes of eventually rapidly scaling—but they’re still establishing a track record.

SBA 139

SBA Forecast Software Review Business Plan 139

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

crowdSPRING Blog

OCTOBER 10, 2014

Refocusing the Startup Burn Rate Debate | OpenView Blog – crowdspring.co/1n8paLq. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link].

Social Media 97

Social Media Small Business Design Media 97

Transformify

AUGUST 27, 2017

Their investors may push them into that direction too, as the high burn rate is often seen as a prerequisite for high growth. You don’t have the right people on board, you are burning cash and the work is not done, at its worst, your product is already live and you are losing clients due to software bugs and poor user experience.

Hiring 64

Hiring Software Review Burn Rate Startup 64

Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85