Remove .Net Remove Funding Remove IP Remove Venture Capital
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
article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. Why Shouldn’t Most Services Businesses Raise VC? You own the IP you create.

Services 332
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 Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Having street smarts with no inspirational ability to build teams can yield a great small business but will be difficult to scale into a large VC-backed business. So we as VCs search for entrepreneurs/founders who have the whole package or as much of it as possible. In the book they profile how VC worked in the early days (60s / 70s).

article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

To grow faster businesses need resources in today’s financial period to fund growth that may not come for 6 months to a year. You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off.

Startup 418
article thumbnail

How to Kick Start Your Community’s Startup Scene

Both Sides of the Table

To interconnect these computers we needed IP-based telecommunications equipment build by the likes of Cisco Systems and Juniper Networks. Changes in the Software World & in Venture Capital. It required a diffusion of personal computers that led to the massive growth of Hewlett Packard, Intel, Apple Computers and others.

Startup 390
article thumbnail

Interview with Kelly Tompkins, AdventureLink

socalTECH

Last week, Altadena-based AdventureLink (www.adventurelink.com) announced that it raised a Series A funding round, for the firm's adventure travel reservation network. The round came from Anthem Venture Partners and the Mail Room Fund. Speaking of the economy, how difficult was it to get funding given the economy?

Web 100
article thumbnail

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

Both Sides of the Table

I angel funded a company 5 years ago. Because no VCs would fund them with a pending lawsuit of this nature. I funded a company where the CEO stepped down. I funded a US company that bought a URL and a brand name and filed for a trademark. Lawsuits are on the rise. They won two big national contracts.

Startup 150