article thumbnail

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
article thumbnail

GrubMarket raises $60M as food delivery stays center stage

TechCrunch LA

Companies that have leveraged technology to make the procurement and delivery of food more accessible to more people have been seeing a big surge of business this year, as millions of consumers are encouraged (or outright mandated, due to Covid-19) to socially distance or want to avoid the crowds of physical shopping and eating excursions.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Catasys Sees Surge In Telehealth Enrollment Due To Pandemic

socalTECH

Santa Monica-based Catasys , a provider of artificial intelligence and technology-enabled healthcare products used for telehealth services, says it is seeing a surge in enrollment in its programs, as a result of the ongoing COVID-19 pandemic. The company says it historically sees approximately $6,500 net revenue per enrolled member.

article thumbnail

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. But the war for tech talent has rarely been so brutal.

Marketing 246
article thumbnail

Upfront Ventures Raised New $280 Million Fund

Both Sides of the Table

I think that’s in part due to market conditions being favorable to venture capital and in part it’s due to the significant uptick in Los Angeles as a major tech hub in the US. It goes without saying that the shortening in time also was due to performance. University Endowments. Foundations.

article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. 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”). Simplifying: Revenue -. Operating Costs.

Startup 418
article thumbnail

Are Business Plans Still Necessary?

Both Sides of the Table

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? Each quarter you should review your model. Tags: Startup Advice startup technology vc venture capital. What assumptions do you make in the cost lines about people?

Web 2.0 334