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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.
If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year.
I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. But in these years I learned how to sell software – necessity is the mother of all invention.
Yet, despite his exceptional courtroom theatrics, you would be foolhardy to hire good old Johnnie to review your software cross-licensing agreement. Once you draft the straightforward text, sans the legal mumbo-jumbo, ask your lawyer to review the text to ensure your layman descriptions do not result in an unintended interpretation.
Everyone knows what it means to have a “dot-com”, and most people have heard of a “dot-net” and a “dot-org.” “Many of our clients need help understanding the mechanics of trademarks on the Internet,” said Dr. George Edwards , a software and Internet IP consultant with Quandary Peak Research.
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