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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.

Startup 383
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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

For a high-volume seed fund that adds many portfolio companies every year (such as our friends at 500 Startups who invest in over 100 distinct companies annually), the cost of a bad affirmative decision (a false positive) is quite low, since it accounts for a relatively small portion of their total fund.

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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

I had seen many cycles and decided that since I was going to do it all over again I should write about it. I decided to write about my experience and to be blunt. There was no viral social networking products back then like Twitter where people could easily discover your content. That changed very quickly. And covered we did.

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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.

Startup 150
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Angel Funding Advice

Both Sides of the Table

Product : You should build a product or a prototype. I’m a software guy so I’m sure there are cases where building isn’t feasible. You cannot be just a biz dev type, salesperson, marketing genius or whatever and divorce yourself from product. Great companies are built by having great products.

Angel 291
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The Long-Term Value of Loyalty

Both Sides of the Table

No rule is ever absolute no matter how it sounds when one writes a blog. But in these years I learned how to sell software – necessity is the mother of all invention. I learned how to better run a product management process. I learned how to integrate customers into our product development process.

Startup 285
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Top 30 Startup Posts for July 2010

SoCal CTO

5 Lessons from 150 startup pitches - A Smart Bear: Startups and Marketing for Geeks , July 11, 2010 I just reviewed several hundred startup pitches for Capital Factory. Between this blog and reviewing applications to Capital Factory I see hundreds of pitches a year. Most were on paper and video; 20 were invited to pitch in person.

Startup 217