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As others have mentioned below, there are probably at least one or two intermediate steps between where you appear to be now (earliest stages of business planni
by answerly 16y ago
As others have mentioned below, there are probably at least one or two intermediate steps between where you appear to be now (earliest stages of business planning)and being in a position to raise a significant financing round. You'll need a product and probably some initial traction with users and, hopefully, revenue.
That said, you can calculate a rough monthly burn rate by adding together the estimated monthly salaries of the employees you referenced in your post and increase that number by 130-150%. This roughly accounts for all the operating expenses. If you need guidance on salaries try checking out resources like salary.com.
You'd probably want at least 18 months of cash in the bank. This gives you a year to execute and six months to focus on sustainable profitability and/or additional later stage financing.
So, monthly burn rate x target number of months of cash in the bank is your target financing amount.
Hope this helps.
- donohoe 16y agoThis is clear and exactly what I needed. Much appreciated.