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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. Gross burn is the total amount of money you are spending per month.
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.
Bank loans with restrictive covenants are taken on. Second, the audit committee is responsible for hiring an outside auditor as appropriate, reviewing the accounting practices of the corporation and making sure that laws are followed relating to recognition of revenues and expenses. The number of employees grows.
Bank loans with restrictive covenants are taken on. Good audit committees also review the corporation’s insurance portfolio, risk protection policies such as email and computer use, disaster response and recovery policies and any other area where the corporation’s very life could be at risk from inattention.
Questions I ask Scott Stratten : [01:59] When is the aptly named revised edition of ‘QR codes, kill kittens’ coming out? [06:16] Click on over and give us a review on iTunes, please! When is the revised edition of QR codes kill kittens coming out? The QR codes, they're the true winner of the pandemic.
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