Remove Cost Remove Revenue Remove Warrant
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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. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Net burn is the amount of money you are losing per month.

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. But it is clearly not warranted in all cases. Probably revenue based. Probably a minimum of 3.

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Beware of Premature Merge Elation

Both Sides of the Table

How much dilution should I take for it?&# My friend’s company was pre-revenue. If you’re in the minority that succeed it’s possible that even when you sell you’ve raised too much money and taken too much dilution and your exit price isn’t high enough to warrant a big return for yourself.

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How to Manage Friendly Fraud Chargebacks

The Startup Magazine

While true fraud and merchant error chargebacks should not be fought, as they are considered by card issuers to be the merchant’s responsibility/liability, friendly fraud chargebacks should be contested, otherwise your business is at threat of losing revenue. Friendly Fraud Chargeback Categories. Tips for Managing Friendly Fraud Chargebacks.

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10 Reasons You Don’t Qualify for an SBA Disaster Loan

Up and Running

Maintaining your business through the coronavirus crisis has likely led you to cut costs, revise your sales projections, and potentially seek out a loan to help you stay afloat. Second, if a requested loan is below a certain amount, depending on the size of the lender, the cost to service that loan is too high to make it worth it for them.

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Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

It can be lower cost and can either buy more time or accelerate growth. It’s generally got a lower cost compared to equity capital and can help support growth. Traction and revenue? Today, we wanted to share some basics of another source of capital: venture debt. What is it, and how should founders think about it?