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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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Magnite Prices $350M Offering

socalTECH

Los Angeles-based Magnite, the sell-side advertising software developer which was previously known as Rubicon Project, says it has priced an offering of $350M in convertible senior notes. The notes are due in 2026. The company said the convertible note offering was made to qualified institutional buyers.

Pricing 113
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?” Gross Profit (also called Gross Margin or sometimes “Net Revenue”). ” If you’re not profitable you’re purely a cost center to them.

Startup 418
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Are Business Plans Still Necessary?

Both Sides of the Table

That died with waterfall software development. Good ones don’t care about the granular details in a startup but they do care about how big the market is, what share you’ll get and what assumptions you make about pricing over time and other market factors. Ditto for enterprise software companies. Do so at your peril.

Web 2.0 334
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Dot Hill Completes Cloverleaf Acquisition

socalTECH

Carlsbad-based Dot Hill Systems said today that it has completed its acquisition of Cloverleaf Communications , a developer of storage virtualization and management software. Dot Hill said it expects the buy to help it expand beyond the storage array market, into the higher margin storage software market. cloverleaf is based in Israel.

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How long can Zuckerberg afford to bankroll the AR/VR market?

TechCrunch LA

Hello friends, and welcome back to Week in Review ! The company’s stock tanked by more than 26 percent, representing a $230 billion reduction in market cap and a $31 billion drop in Zuckerberg’s personal net worth. Last week, we talked about about the “de-stonkifying” of the market. Image Credits: Facebook.

Marketing 246
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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

However, in the long run, entrepreneurs always benefit from delivering Maximum Utility for a fair price. Perhaps in part due to its dominant market share, WebEx adopted telecom-style pricing, which effectively penalized their users. WebEx’s predatory pricing made it vulnerable to a new entrant. Arbitrage Is Fleeting.