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Startup Burn Rates Explained in 500 Words or Less

Hubspot

It’s tempting to write off “burn rate” as cute startup jargon or a funny subplot on the television series “Silicon Valley.” But a correctly calculated burn rate is crucial for the responsible growth, planning, and success of a business. What is cash burn rate?

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The Ultimate Guide to Startup Sales

Hubspot

Startup sales make for difficult, exciting, often unpredictable waters to navigate. Everyone involved in a startup sales org — from founders down to reps — is bound to face a host of challenges as their company gets its bearings. Startup Sales Strategy. Startup Sales Metrics.

Startup 57
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30 Commonly-Used Startup Terms Defined

Hubspot

Entrepreneurship is a broad concept with plenty of components that need to be defined, making the range startup terminology both ecletic and extensive. From finding investors to launching your company to taking the business public, there are hundreds of startup-specific terms to account for.

Startup 59
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The Ultimate Guide to Startups

Hubspot

You might be in the midst of launching a startup. Maybe you’ve planned out your path into the world of startups and have yet to start … or perhaps you’ve simply dreamed about your startup behind-the-scenes. Startups mean different things to different people. Startups

Startup 69
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Four apps to boost the speed and strength of your startup

Biznology

However, creating an HR department or even dedicating a single person to the task adds to the overhead and that’s like Kryptonite to a small business or startup, if I can return to my Superman analogy for a moment. Justworks takes care of this for startups and smaller businesses. Founders and small business owners can’t afford to up their burn rate with that kind of overhead expense. “Faster than a speeding bullet. More powerful than a locomotive.

Startup 101
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Frugality, Ping-Pong Tables and Silicon Valley Startups

LeanData

When tech startup Appthority was looking for new office space early last year, Domingo Guerra suffered a bad case of sticker shock. So it’s no wonder that tech startups are cutting back on perks and tightening belts. It’s hardly armageddon that startups are being forced to focus more on generating revenue. Suddenly, burn rates matter again. That’s the template — capital-efficient growth — startup investors are now expecting, he added.

Startup 43
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Frugality, Ping-Pong Tables and Silicon Valley Startups

LeanData

When tech startup Appthority was looking for new office space early last year, Domingo Guerra suffered a bad case of sticker shock. So it’s no wonder that tech startups are cutting back on perks and tightening belts. It’s hardly armageddon that startups are being forced to focus more on generating revenue. Suddenly, burn rates matter again. That’s the template — capital-efficient growth — startup investors are now expecting, he added.

Startup 40
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Frugality, Ping-Pong Tables and Silicon Valley Startups

LeanData

When tech startup Appthority was looking for new office space early last year, Domingo Guerra suffered a bad case of sticker shock. So it’s no wonder that tech startups are cutting back on perks and tightening belts. It’s hardly armageddon that startups are being forced to focus more on generating revenue. Suddenly, burn rates matter again. That’s the template — capital-efficient growth — startup investors are now expecting, he added.

Startup 40
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The Entrepreneur's Guide to Venture Capitalists

Hubspot

There's no doubt about it -- startups are expensive. Time and money are the most common resources for startups -- and the more you have of one decreases the amount you need of the other. A venture capitalist (VC) is an investor that works with high growth potential startups.

Sales 59
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Why Growth at All Costs?

LeanData

Gurley, a general partner at Benchmark Capital, has been one of the leading voices sounding caution about the overheated state of the tech startup market and the need to return to solid business fundamentals. But Daly is among those who believe the much-discussed “burn rate” of many companies is unsustainable. Joanne Chen, a Foundation Capital partner who specializes in MarTech startups, believes a greater emphasis is going to be placed on accountability.

Cost 43
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Accounting 101: The Ultimate Guide to Accounting Basics

Hubspot

Burn Rate. Your burn rate is how quickly your business spends money. To calculate your burn rate , simply pick a time period (such as a quarter or a year). In college, I started a local consignment business.

Sales 63
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Why Growth at All Costs?

LeanData

Gurley, a general partner at Benchmark Capital, has been one of the leading voices sounding caution about the overheated state of the tech startup market and the need to return to solid business fundamentals. But Daly is among those who believe the much-discussed “burn rate” of many companies is unsustainable. Joanne Chen, a Foundation Capital partner who specializes in MarTech startups, believes a greater emphasis is going to be placed on accountability.

Cost 40
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Why Growth at All Costs?

LeanData

Gurley, a general partner at Benchmark Capital, has been one of the leading voices sounding caution about the overheated state of the tech startup market and the need to return to solid business fundamentals. But Daly is among those who believe the much-discussed “burn rate” of many companies is unsustainable. Joanne Chen, a Foundation Capital partner who specializes in MarTech startups, believes a greater emphasis is going to be placed on accountability.

Cost 40
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Why Growth at All Costs?

LeanData

Gurley, a general partner at Benchmark Capital, has been one of the leading voices sounding caution about the overheated state of the tech startup market and the need to return to solid business fundamentals. But Daly is among those who believe the much-discussed “burn rate” of many companies is unsustainable. Joanne Chen, a Foundation Capital partner who specializes in MarTech startups, believes a greater emphasis is going to be placed on accountability.

Cost 40
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Is winter coming for martech? Or just for martech VCs?

chiefmartech

The premise is this: there are a significant number of martech companies that have taken large amounts of VC funding, their burn rate is much greater than their revenue, and the exponential growth curve that their VCs expected of them is flattening out. They’re profitable, growing at a double-digit rate, expanding internationally, and innovating their industry in a myriad of remarkable ways. Don’t accelerate your startup.

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The Winds of Change

LeanData

The Federal Reserve raising the interest rate. Startups, no matter how innovative and disruptive to the status quo, couldn’t continue to spend more in sales-and-marketing costs than they received in revenue. Burn rates” are important again. Here’s the thing about pendulums. They swing back and forth. It’s just what they do. Grandfather clocks. Amusement park rides. Economic trends.

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The Winds of Change

LeanData

The Federal Reserve raising the interest rate. Startups, no matter how innovative and disruptive to the status quo, couldn’t continue to spend more in sales-and-marketing costs than they received in revenue. Burn rates” are important again. Here’s the thing about pendulums. They swing back and forth. It’s just what they do. Grandfather clocks. Amusement park rides. Economic trends.

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The Winds of Change

LeanData

The Federal Reserve raising the interest rate. Startups, no matter how innovative and disruptive to the status quo, couldn’t continue to spend more in sales-and-marketing costs than they received in revenue. Burn rates” are important again. Here’s the thing about pendulums. They swing back and forth. It’s just what they do. Grandfather clocks. Amusement park rides. Economic trends.

article thumbnail

The Winds of Change

LeanData

The Federal Reserve raising the interest rate. Startups, no matter how innovative and disruptive to the status quo, couldn’t continue to spend more in sales-and-marketing costs than they received in revenue. Burn rates” are important again. Here’s the thing about pendulums. They swing back and forth. It’s just what they do. Grandfather clocks. Amusement park rides. Economic trends.