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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

It’s nearly impossible to get a services company financed by VCs. And stop effing around trying to create a product company.&#. It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. You’re a small fish. Why Shouldn’t Most Services Businesses Raise VC?

Services 332
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Along with Greycroft Partners we were the first investors in Maker Studios 3 years ago when the company had no revenue and limited infrastructure. Building direct customer relationships with viewers (who want to tune into your channels). Selling at smaller retailers will net you fewer customers and higher margins.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. While Google and Facebook will buy “acquihires” (at least as of Dec 2011), many acquirers hate the idea of buying companies that aren’t profitable. ” But they want to do it with leverage. Operating Costs.

Startup 418
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Interview with Cliff Rees, XCast Labs

socalTECH

It seems that every week, a new, Voice-over-IP provider firm surfaces in the market, either providing PBX services, voicemail, or other similar services. What is your VoIP service all about, and how is this different from what seems to be lots of Voice over IP service providers? Cliff Rees: We're a software as a solutions company.

IP 165
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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. I funded a company where the CEO stepped down. They tried to claim that the company was infringing.

Startup 150
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Get Inside the Mind of an Angel Investor

Both Sides of the Table

some fun, big tech issues like privacy, net neutrality, location-based services and real-time data. A very big thanks to Alexandra Harris, the founder of FanCause , a company that aims to connect entertainment brands with their fans to raise money. lessons learned from his days as an entrepreneur. Sounds like a noble cause.

Angel 302