Is My Startup Burn Rate Normal?

“that’s a fucking bubbly burn”

Running The Numbers

“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 burdened” cost of a person including rent and other costs.”

Getting to Break Even

Market Opportunity vs. Growth Rate

Risk Tolerance

“When startups die, the official cause of death is always either running out of money or a critical founder bailing. Often the two occur simultaneously. But I think the underlying cause is usually that they’ve become demoralized. You rarely hear of a startup that’s working around the clock doing deals and pumping out new features, and dies because they can’t pay their bills and their ISP unplugs their server. Startups rarely die in mid keystroke. So keep typing!

Self-Reported Burn Rates

Dunwello — Total Seed Funding: $1,650,000

Buffer — Total Seed Funding: $400K + Not Disclosed

Eligible— Total Seed Funding: Not Disclosed (YC S12)

Happy Inspector — Total Seed Funding: $895K

Blended Labs — Total Seed Funding: $300K

Sourceeasy — Total Seed Funding: $887K

AdEspresso— Total Seed Funding: $1,000,000

codeSpark — Total Seed Funding: Undisclosed

TattooHero— Total Seed Funding: $200K

Need a little more inspiration?




CEO & Cofounder of @Mattermark

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Danielle Morrill

Danielle Morrill

CEO & Cofounder of @Mattermark

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