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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.

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What is the Right Burn Rate for your Startup?

Both Sides of the Table

The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn. Gross burn is your cost base and net burn is the difference between your revenue and costs. GAAP Net Income, which at times isn’t a good reflection of cash burn). Each investor would need to write $1–1.5

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Interview with Mark Suster, GRP Partners

socalTECH

As a result, I'm looking at a lot of software-as-a-service companies, and have run a number of SaaS companies. We'll even write a half a million check. What is a net loss for us, is when Sequoia or Benchmark flies down on their corporate jet, meets with a company, and tells them to relocate to Northern California.

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Interview: Thorsten von Eicken of RightScale

InfoChachkie

I taught a somewhat crazy course about writing and deploying a scalable website in Ruby on Rails and deploying it in EC2. But throughout the transition I had my safety net. Most big companies initially rejected use of the cloud, just as they rejected SaaS solutions when we launched GoToMyPC in 2001.

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Playing the Long Game in Venture Capital

Both Sides of the Table

Our goal is to produce a $10 billion+ winner and remain the market leader in this SaaS category of AI in Sales & Marketing. He writes “Half of all venture funds outperform the stock market which is the benchmark most institutions measure VC funds against.”