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You should plan to have somewhere between $153.23 and $724.78 left by demo day. Your burn rate is a proxy for your company's growth. If you have too much money
by 7Figures2Commas 12y ago
You should plan to have somewhere between $153.23 and $724.78 left by demo day. Your burn rate is a proxy for your company's growth. If you have too much money left, investors will think you're not growing fast enough.
- tdicola 12y agoBuild a snapchat clone in a month. Oh crap there's $100k left! Show up to demo day in a Tesla Model S.
- byoung2 12y agoAdditional funding after demo day could take weeks or months. You would want some money to run your company in the meantime.
- 7Figures2Commas 12y ago$153.23 to $724.78 is more than enough to keep a couple of t2.micro AWS instances going and ramen in the cupboard for a few months. Remember: the period after demo day and your second seed round separates the winners from the losers. This is when you have the greatest opportunity to show investors that you can hack life and hustle. Pull it off and your investors might even agree to an uncapped convertible note.
- byoung2 12y ago$153.23 to $724.78 is more than enough to keep a couple of t2.micro AWS instances going and ramen in the cupboard for a few months. And how about rent for said cupboards? At least a few grand?
- 7Figures2Commas 12y agoLike I said, you need to hack life and hustle. If you're paying rent, you're doing it wrong and any reputable Silicon Valley investor will tell you you're not hacking and hustling hard enough. It's bad enough Y Combinator upped its funding to $120,000. Entrepreneurs did a lot better with $5,000/head.
- byoung2 12y agoYou're contradicting yourself. You're saying you should spend the whole $120k before demo day, but you're also saying you should hack and hustle like you only have $5k per head.
- thisGuysAccount 12y agoyou're feeding the troll.
- deleted 12y ago[deleted]