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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

But equally some partners joined firms in 2000 and have still never seed any upside in cash since their funds haven’t yet returned the initial capital [note: VC funds usually return all of the capital that they raised first and then share 20% of the profits above this hurdle]. I know for a fact this isn’t true.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We’re going to start aggressively spend money on marketing our product. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. We want a strong balance sheet (um, ok.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

I know it sounds obvious but just so you understand: There are more capital sources available for earlier-stage capital, the information on which they are evaluating the investment is less (it is almost certainly just team and product) and the risk of the investor getting things wrong is diminished. What is Your Risk Appetite?

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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

There was no viral social networking products back then like Twitter where people could easily discover your content. We have also been very busy with our next release, which is due out by December 11th (but I’ll save that for a different post). Consumer approach to software for business users. Free product. Folksonomy.

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It’s Morning in Venture Capital

Both Sides of the Table

The most recent report to weigh in on the troubles of the industry was produced by the esteemed Kauffman Foundation. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. Thank you, Aaron Sorkin!