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You might decompose burn rate into a core that is rather fixed (a few employees that you have to have, an office space, substantial hosting or other commercial
by iigs 18y ago
You might decompose burn rate into a core that is rather fixed (a few employees that you have to have, an office space, substantial hosting or other commercial machinery) and an incremental component that increases with projects undertaken.
As an investor, one may wish for several related ideas to be explored concurrently with the hope that one sticks. As an investor, one may also desire that the business be prepared for aggressive sales when their idea (hopefully) finally goes big. Go hard or go home, so to speak.
I'm not arguing for or against these mindsets, just that if there was not common value in staffing large and fast, VC rounds would be structured like trust funds, not lottery payouts.