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

Both Sides of the Table

As I write these words I already imagine my next deposition in which I’m asked to read this out loud. 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. *. Lawsuits. Most ideas are fungible.

Startup 150
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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!” If you have a market lead then raising capital and making investments now will help you as others enter the market. Operating Costs.

Startup 418
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

For much of 2013 I watched the press write articles about how the YouTube “MCNs” (multi-channel networks) were doomed and tried to square that with the data I was watching at the one I invested in, Maker Studios, who has had one hell of a year. Selling at smaller retailers will net you fewer customers and higher margins.

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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” round investors or late-stage seed investors will take a market risk (they want to see the product, vision and maybe even the first customers, and they bet on there being a big enough market). “B” what is your ratio? (0:37:35).

Angel 302
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Being tenacious without the mental flexibility to pivot based on market feedback is a disaster. But when I’m looking to write my check I need to look in the eyes of the captain — the maestro who brings the whole orchestra together. They often make great team members such as head of products, CTO, head of sales, CFO, etc.

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Roping in the Legal Eagles

InfoChachkie

Like most mature markets, the legal profession is highly segmented with respect to the services provided and markets served. Just as you would not ask your family physician to perform a coronary bypass, do not ask your corporate lawyer to help you write your patent application. Your Lawyer is not a Doberman….