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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

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. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

But when I’m looking to write my check I need to look in the eyes of the captain — the maestro who brings the whole orchestra together. He wanted to raise angel money. Partners in VC funds only wanted to fund entrepreneurs who had a certain percentage of their net worth tied up in their venture. I told him to quit his job first.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. One of them is profitability.

Startup 418
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Why Lawsuits Are On the Rise at Startups and What To Do About It

Both Sides of the Table

As I write these words I already imagine my next deposition in which I’m asked to read this out loud. I angel funded a company 5 years ago. This also happens out of “startup weekends” where it’s unclear who contributed to the IP and where many people don’t continue with the idea beyond the first 30 days.

Startup 150
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Get Inside the Mind of an Angel Investor

Both Sides of the Table

In my ongoing quest to get you good transcripts of the wonderful interviews we’ve done in the past, I present you with one amazing interview here with Tom McInerney – a friend, co-investor, former entrepreneur turned angel investor and “wizard of Oz&# behind the scenes at the uber hot startup Klout. In fact, HAVE done so.

Angel 302