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A heartbreaking story about time and money.

Berkonomics

First, think about your time as money! Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. How about young or pre-revenue companies? We often accept that development schedules for young companies are almost always too optimistic.

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Should you cast your net where the big fish swim?

Berkonomics

But for most, the true sign of success and potential for even more is in the landing of a major account, one that validates the pricing, quality and competitive advantages of a company’s offering. A personal story about dealing with too large a company. Aim high for that major account.

.Net 156
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An economics lesson for growing companies

Berkonomics

Growing companies usually require more working capital during their periods of rapid growth. If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity.

Company 156
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Should Startups Care About Profitability?

Both Sides of the Table

They actually lost about $175 million in cash in that quarter, FWIW. I know this seems obvious but I promise you that even smart people forget this when talking about profitability. Are you looking to potentially sell the company in the next year or two? See appendix if you want to know more on this.)

Startup 227
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in. But what IS the right amount of burn for a company? Gross Burn vs. Net Burn. Net burn is the amount of money you are losing per month.

Startup 383
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How long can Zuckerberg afford to bankroll the AR/VR market?

TechCrunch LA

Last week, we talked about about the “de-stonkifying” of the market. The company’s stock tanked by more than 26 percent, representing a $230 billion reduction in market cap and a $31 billion drop in Zuckerberg’s personal net worth. Hello friends, and welcome back to Week in Review !

Marketing 246
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Need money? Read this!

Berkonomics

There is a lot to say about retaining control. You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. You will have more control over strategy and execution than with an outside board overseeing planning and performance.