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

How I Use Visualization to Drive Creativity

Both Sides of the Table

So I thought I’d write a post about how I drive my personal creativity. (A The key is channeling what you learn when you drive onto paper for retention purposes so you have to write it down soon afterward. When I write a blog post I often see the words before I write them. These are all creative processes.

Writing 356
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

On Funding?—?Shots on Goal

Both Sides of the Table

When you first start your career as an investor (or when you first start writing angel checks) your main obsession is “getting into great deals.” You need shots on goal as not every one will go in the back of the net. You’re thinking about one bullet at a time. billion When Ring started, even the folks at Shark Tank wouldn’t fund it.

Funding 294
article thumbnail

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

Startup 212
article thumbnail

What is the Definition of a Seed Round or an A Round?

Both Sides of the Table

So VCs started writing some smaller A-rounds. If you have raised $2-4 million from a bunch of high-net-worth individuals I simply don’t see it as an A-round. If you''re newer to VC math here''s a great primer]. If you want a great primer on how the VC and startup funding scene changed here’s a great primer.

article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Gross Profit (also called Gross Margin or sometimes “Net Revenue”). One of them is profitability. Simplifying: Revenue -.

Startup 418
article thumbnail

Effective Email Introductions or Why Blind Intros Suck

InfoChachkie

Proper Context – If the context of the intro is the least bit unclear, I ask the person requesting the introduction to write a paragraph or two that I can forward to the target contact. In this way, the person seeking an intro can speak in their own “voice,” which reduces the risk that I will inadvertently dilute or misstate their message.

Email 256