Burn Rates: How Much?

Posted on by Fred Wilson & Jason Li

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In the comments to last week’s Burn Rate post, I was asked to share some burn rates from our portfolio. I can’t do that. But an alternative suggestion was to write a post suggesting some reasonable burn rates at different stages. I can do that and so that’s the topic of today’s post.

The following applies to…

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Burn Rate

Posted on by Fred Wilson & Jason Li

087-burnrate

MBA Mondays is back after a week off. Today we are going to talk about burn rate, or cash burn rate to be more specific.

Your burn rate is the speed at which your cash balance is going down. If you had $1mm in cash on January 1st, and now it is October 1st and you have $250,000…

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Sustainability

Posted on by Fred Wilson & Jason Li

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When I was in business school 25 years ago, I don’t recall the term sustainability used. Maybe it was, but it certainly didn’t register in my brain. The mantras that I recall were return on investment, shareholder value, revenue growth, and driving efficiencies in the business.

But as I look at many of the challenges facing businesses today, it seems…

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VP Finance vs CFO

Posted on by Fred Wilson & Jason Li

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Today on MBA Mondays we are going to talk about the financial leader in an organization. Sometimes this person is called the VP Finance and sometimes they are called the CFO. What is the difference? When will a VP Finance do? And when do you need a CFO?

Like all titles, they can get mangled. A person might be promoted…

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MBA Mondays: Cap Tables

Posted on by Fred Wilson & Jason Li

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Cap Tables (short for capitalization tables) are spreadsheets that show how much everyone owns of the company. You can get a stockholder ledger from your lawyer that will list all the stockholders and show how many shares or options they have, but I don’t consider that a cap table.

For the past 25 years, I’ve used a simple form, mostly…

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