Funding milestone curves

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  • From a talk at Startup Standup by Carlos. He had a handdrawn set of curves. I added some additional slides. If anyone wants the original Visio or Omnigraffle files send me an email.
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Funding milestone curves

  1. 1. Funding events, burn rate curves, vs milestones Milestones met before funding events. Overlap between funding rounds Funding curves minimally overlap each other. Start funding Bridge required to reach next milestone Risk of running out of money. Zero funds Start bridge funding Funding runs out before next milestone$s $1m m0: demo m1: MVP m2: first revenue m3: ... $250k m4: ... $50k m0 m1 m2 m3
  2. 2. Funding events, burn rate curves, vs milestones Milestones met before funding events. Overlap between funding rounds Funding curves significantly overlap each other. No Valley of Death. Start funding Bridge required to reach next milestone Zero funds Start bridge funding Funding runs out before next milestone$s $1m m0: demo m1: MVP m2: first revenue $250k m3: ... m4: ... $50k m0 m1 m2 m3
  3. 3. Funding events, burn rate curves, vs milestones Overlap between funding rounds Milestones met but a missed milestone and hence funding event. Bridge loan until next milestone met. Start funding Bridge required to reach next milestone Zero funds Start bridge funding Funding runs out before next milestone$s $1m m0: demo m1: MVP $250k m2: first revenue m3: ... m4: ... $50k $50k m0 m1 m2 m3
  4. 4. Funding events, burn rate curves, vs milestones Overlap between funding rounds Milestones met but a missed milestone and hence funding event. Valley of Death. Start funding Bridge required to reach next milestone Zero funds Start bridge funding Funding runs out before next milestone$s $1m m0: demo m1: MVP m2: first revenue $250k m3: ... m4: ... $50k The red bar show the valley of death. Funding runs out before the milestone is reached. The next round of funding does not occur. The company shuts down. m0 m1 m2 m3

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