Remove .Net Remove Capital Remove Sales Remove Writing
article thumbnail

On Funding?—?Shots on Goal

Both Sides of the Table

When you first start your career as an investor (or when you first start writing angel checks) your main obsession is “getting into great deals.” the sale of the company for $1 billion. You need shots on goal as not every one will go in the back of the net. You’re thinking about one bullet at a time.

Funding 294
article thumbnail

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
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is the Right Burn Rate for your Startup?

Both Sides of the Table

One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is. That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management.

Startup 212
article thumbnail

7 Keys To The Best Internet Name For Your New Venture

Startup Professionals Musings

range in the $20 to $40 range for a year registration, but you may be able to find sales on certain extensions for as little as fifty cents per year. First you have to find the current owner, using WHOIS , or other lookup functions available on the net. This will allow your company to build some assets before committing the capital.

Startup 136
article thumbnail

Playing the Long Game in Venture Capital

Both Sides of the Table

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. The abundance of late-stage capital is good for us all. Interim liquidity plus long-term capital gains work really, really well.

article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you.

Startup 227
article thumbnail

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!” The most obvious way to explain this is with sales people. Gross Profit (also called Gross Margin or sometimes “Net Revenue”).

Startup 418