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With a 15% churnrate, that suggests about $7 in lifetime value. The next two entrepreneurs run a wine tasting cruise business. Much of the money went into buying inventory, and a founder with around 40% owernship is still highly motivated to see the company succeed. Cuban loved both the idea and the entrepreneur.
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. I’m surprised how few entrepreneurs have this open conversation with their investors.
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