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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 Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

There’s a line of thinking in Silicon Valley that you should build product businesses rather than services businesses. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. This team is talented.

Services 332
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Building direct customer relationships with viewers (who want to tune into your channels). You don’t exactly get to make the margin you might like but as a candy bar supplier you need to be there to build awareness of your product with consumers if you want to be a large, mass-market product. Sound interesting?

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million. If you had huge customer growth but just didn’t focus on revenue that’s a different story. Gross Profit (also called Gross Margin or sometimes “Net Revenue”).

Startup 418
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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. When I meet with Tom offline it’s obvious that he immediately is thinking about product issues, technology trends, funding rounds, etc. The team, of course, is just as important as the product or idea.

Angel 302
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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

They were then sued for trademark infringement by a foreign company who had no product, no customers and no employees in the US. 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