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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

But what IS the right amount of burn for a company? Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. Let’s set up a framework.

Startup 383
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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. And stop effing around trying to create a product company.&#. But it might not.

Services 332
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. ” Harsh, but reality.

Startup 418
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Having street smarts with no inspirational ability to build teams can yield a great small business but will be difficult to scale into a large VC-backed business. So we as VCs search for entrepreneurs/founders who have the whole package or as much of it as possible. In the book they profile how VC worked in the early days (60s / 70s).

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How to Kick Start Your Community’s Startup Scene

Both Sides of the Table

To interconnect these computers we needed IP-based telecommunications equipment build by the likes of Cisco Systems and Juniper Networks. Not all of these products & companies came from Silicon Valley but the overwhelming majority did. Changes in the Software World & in Venture Capital. KickStarter? And on and on.

Startup 390
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Interview with Kelly Tompkins, AdventureLink

socalTECH

The round came from Anthem Venture Partners and the Mail Room Fund. What's the new company all about? Kelly Tompkins: I have done six online travel companies. Kelly Tompkins: Yes, in 1998, there was Away.com, iExplore, and there was significant venture capital thrown at that segment. Thanks for the interview.

Web 100
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Why Lawsuits Are On the Rise at Startups and What To Do About It

Both Sides of the Table

The simple point is that if you control 51% of your company and/or the voting rights you can avoid a lot of headache and you can still be very generous with early people who join your mission. I angel funded a company 5 years ago. Because no VCs would fund them with a pending lawsuit of this nature. Lawsuits are on the rise.

Startup 150