Startups: Burn Rates At Different Stages

December 14, 2011 4:33 am

We spotted this today:

“Building Product Stage – I would strongly recommend keeping the monthly burn below $50k per month at this stage…
Building Usage Stage – I would recommend keeping the monthly burn below $100k per month at this stage ..
Building The Business Stage – I would recommend keeping the burn below $250k per month at this stage.

A good rule of thumb is multiply the number of people on the team by $10k to get the monthly burn. That is not the number you pay an employee. That is the “fully burdended” cost of a person including rent and other related costs”

Statistics Source: AVC

For Interesting Statistics Everyday, Find Statspotting on Facebook and Follow Statspotting on Twitter

Leave a Reply