Remove Cost Remove Covenant Remove Operations
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Startup Lessons'

Burn Rate 383
article thumbnail

Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

We engage intimately with businesses and their assets, understanding their operations, aspirations, and the hurdles they face. We recently worked with a retailer who was struggling due to operational inefficiencies, an overly broad and outdated product line, and a burdensome debt structure. ARIF BHALWANI: Sure.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. That said, nothing is cost-free. Governance. Cash collateral.

article thumbnail

How should I finance my new venture? - Startups and angels: Along.

Tim Keane

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk. Example one: Sustainable net operating income with some growth in a stable market.    Appropriate covenants.

Finance 83
article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

Repaid 12-36 months with ability to prepay at reduced cost. The average monthly operating expenses is $70,335. 30% have been operated by females, 70% have been operated by males. 40% have been operated by “visible minorities”, 60% have been operated by “non-visible minorities”. Capital need of up to $1.5M

Revenue 60
article thumbnail

Assessing The State Of And Options For Your Business During COVID-19 Fallout

YoungUpstarts

Following from that, is there an operational plan that can be implemented to lower costs while salvaging the competitive advantage of the company? Which contracts are critical for the business to continue operations? contingent liabilities), and determining what equity (if any) is left for owners.

article thumbnail

9 Business Acronyms You Need To Know

YoungUpstarts

Net Operating Profit After Tax, or NOPAT, is a performance measure that reveals a company’s after-tax profit. EBITDA is often used in loans covenants. The most important thing you need to know if you’ve signed one is when and for what purpose you’re bound to keep your mouth shut. Maybe double-check that contract.