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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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Are Business Plans Still Necessary?

Both Sides of the Table

There were tons of young entrepreneurs showing their latest Web 2.0 That died with waterfall software development. Ditto for enterprise software companies. Usually in a tech / software startup 70-80% of your costs will be people. ’ Our Net Income will be $40 million.&#. 66% Net Operating Margins?

Web 2.0 334
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Sagewise pitches a service to verify claims and arbitrate disputes over blockchain transactions

TechCrunch LA

All of the benefits of a cryptographically secured, publicly verified, anonymized transaction system can be erased by errant code, malicious actors, or poorly defined parameters of an executable agreement. Hoping to beat back the tide of bad contracts, bad code and bad actors, Sagewise , a new Los Angeles-based startup has raised $1.25

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Three Factors Which Intoxicate Venture Capitalists - Why Your Startup Will (Probably) Not Raise Venture Capital Funding

InfoChachkie

This concentration is partly due to natural causes – successful startups spawn other successful startups. If the tech community believes that a certain area is the epicenter of a particular industry, motivated entrepreneurs will start their ventures in such locations, thus reinforcing the geography’s perceived advantageousness.

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Entrepreneurs Should Go For The Quick Buck – Then Stop - Initial Business Models Can Be Enticing But Limiting In The Long Run

InfoChachkie

Many entrepreneurs encounter a similar dilemma. Thus, entrepreneurs must decide when to stop listening to the Sirens’ song of a quick buck and position their company to take advantage of long-term, sustainable business models. However, in the long run, entrepreneurs always benefit from delivering Maximum Utility for a fair price.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

” I mention journalists here because they perpetuate the myth that focusing on profits is ALWAYS the right answer and then I hear many entrepreneurs (and certainly many “normals”) repeating the same mantra. I have had this discussion with many a first-time entrepreneur. If you don’t, somebody else WILL!”

Startup 418
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Interview: Naval Ravikant, Co-Founder AngelList and Co-Maintainer Venture Hacks

InfoChachkie

I recommend you first review Dharmesh’s article and then listen to Naval’s thoughts. Venture Hacks is educating entrepreneurs on the game theory of how to raise venture capital. These days, thanks to code and community, we can productize almost any process done by humans. AngelList is the productization of that.

Startup 273