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Shiba Inu Burn Rate Skyrockets, Everlodge Bullish After Unveiling Marketplace, BNB Sees Price Surge

So should Cardiff Oncology ( NASDAQ:CRDF) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let's start with an examination of the business' cash, relative to its cash burn.

We're Keeping An Eye On Cardiff Oncology's (NASDAQ:CRDF) Cash Burn Rate

So should Verve Therapeutics ( NASDAQ:VERV) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.

We're Not Very Worried About Verve Therapeutics' (NASDAQ:VERV) Cash Burn Rate

Shiba Inu is trading at lower levels, with market indicators pointing towards a continued bearish outlook, contrasting its massive gains in1.

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Given this risk, we thought we'd take a look at whether Icosavax ( NASDAQ:ICVX) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Let's start with an examination of the business' cash, relative to its cash burn.

We're Not Very Worried About Icosavax's (NASDAQ:ICVX) Cash Burn Rate

In a remarkable display of dedication, Shiba Inu has managed to significantly increase the burn rate of SHIB tokens. After enduring a period of consistent

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BurnRate

burnrate

Startups exist as long as they have money in the bank — it seems so simple, but founders often overlook this aspect being busy building their company. Meanwhile, empty coffers are the top reason why startups fail. According to CBInsights, 38% of startups shut down because they run out of cash or fail to attract new funding. It's a common scenario when startups spend a lot and are short on cash while expecting additional funding from investors. But this may not happen, and the company will close. Counting on existing funds and lowering the burn rate, instead, can prolong your runway. And this is the right thing to do: Given the market situation, a low burn is a good sign for investors to support a company. The principle is “earn more, spend less” (thanks, cap!). But what costs should companies cut? And how can they do it wisely? Drop Nice-to-Have Things Startups should trim non-vital expenses that have emerged over the past 1-2 years. Software subscriptions and office rent can eat up a big chunk of a startup’s budget — review what they cost you. List all services your team uses, and give up those not essential for daily operations, or downgrade them to cheaper or free plans. These could include CRMs, tools for project management or communication. Cloud storage costs can also add up quickly, so check them too. If possible, defer payments for the services you need or opt for installment plans. If your company rents an office, consider switching to remote work. You can also try a hybrid format and rent co-working space only for days when your team needs to brainstorm or meet with partners or clients. If you need an office every day, negotiate discounts with your landlord. Nice-to-have amenities — you can have them later. Once, our portfolio startup postponed opening an office to get more time for fundraising. Burn rate benchmarks SaaS Benchmarks 2023 Part 3: Cash Burn Openview 2023 Saas Benchmarks Report Focus on Main Product Features, Key Marketing Activities Developing new products and features can wait until the financial situation improves. If you have a product, stop supporting non-profitable features. If it’s a fitness tracking app, it can be personalized workout plans that require ongoing maintenance but aren't popular among users. Proper product analytics can help make such decisions. Testing new marketing strategies can also wait, but don’t fall into extremes. There’s no need to significantly slash marketing budgets if you have a positive ROMI and a validated strategy. Another mistake is cutting costs on activities that aren’t yet profitable but are soon to become key revenue streams. Rightsize Team, Compensations Review the team structure, and check if you don’t pay over-market rates, or if your teams aren’t too large. Ask for assistance from your board members, investors, and advisors. I often make a map of internal processes in Miro for portfolio companies, detailing all their operations and who’s responsible for each. It shows where they need to reorganize the team. Startups often reduce tech teams to lower burn. Once, our startup had such a costly development team they could create two products instead of one with that budget. Layoffs don’t commonly affect C-level positions. But given their high costs, you can make minor leadership roles part-time or engage high-paid specialists on an hourly or contract basis. Also, consider outsourcing or making some roles part-time in design, coding, marketing, legal and accounting services. When it comes to employee perks, think twice. Some startups cross off these benefits, but this isn’t right. Most companies don’t send their teams to exotic islands, and having some bananas in the office is nice and won’t cost you much. Case study of our portfolio company RedTrack.io, which develops a tool to track and analyze ad performance, reduced its monthly burn rate from $70k to $10-20k within a year. In December 2022, the team saw they couldn’t cover their burn using available funds and cash collections. They had made changes to the product in mid-2022 but needed time to see how it would affect sales and revenue. At that point, the startup was running out of money. For the months ahead, the team planned cost-cutting combined with growth activities, intended to help the company approach zero burn. The startup suspended new R&D initiatives to focus on growing and selling its existing product. It also gave up the office, some subscriptions, and laid off part of the sales, marketing, development, and customer support specialists. However, the team reduction was minimal to allow the company to keep growing. The same logic applied to marketing budgets. Costs were capped so that growing revenues would cause a gradual decrease in burn. Also, the startup received convertible loans (CLAs) from investors and business angels and later obtained a credit line to cover cash gaps during the initial period of plan implementation. By actively securing annual deals with clients paid upfront, the startup achieved a positive cash flow while keeping an optimal net burn. In less than a year, by December 2023, its monthly revenue grew by 75%. Сommunicate Cost-Cutting Smoothly The CEO shouldn’t just come and say to cut budgets and let half of the team go. C-level executives must consult with team leads and create a plan together — don’t just “inform” people. Define why you should cut costs, how much, which costs, and then communicate it with the team. Explain the reasons for downsizing to everyone, and say that the business isn’t closing but needs to be optimized. Setting priorities for this period and choosing a North Star metric can be helpful. Startups exist as long as they have money in the bank — it seems so simple, but founders often overlook this aspect being busy building their company. Meanwhile, empty coffers are the top reason why startups fail. According to CBInsights, 38% of startups shut down because they run out of cash or fail to attract new funding. 38% 38% It's a common scenario when startups spend a lot and are short on cash while expecting additional funding from investors. But this may not happen, and the company will close. Counting on existing funds and lowering the burn rate, instead, can prolong your runway. And this is the right thing to do: Given the market situation, a low burn is a good sign for investors to support a company. The principle is “earn more, spend less” (thanks, cap!). But what costs should companies cut? And how can they do it wisely? Drop Nice-to-Have Things Startups should trim non-vital expenses that have emerged over the past 1-2 years . Software subscriptions and office rent can eat up a big chunk of a startup’s budget — review what they cost you. 1-2 years List all services your team uses, and give up those not essential for daily operations, or downgrade them to cheaper or free plans. These could include CRMs, tools for project management or communication. Cloud storage costs can also add up quickly, so check them too . If possible, defer payments for the services you need or opt for installment plans. check them too If your company rents an office, consider switching to remote work . You can also try a hybrid format and rent co-working space only for days when your team needs to brainstorm or meet with partners or clients. If you need an office every day, negotiate discounts with your landlord. remote work Nice-to-have amenities — you can have them later. Once, our portfolio startup postponed opening an office to get more time for fundraising. Burn rate benchmarks Burn rate benchmarks SaaS Benchmarks 2023 Part 3: Cash Burn SaaS Benchmarks 2023 Part 3: Cash Burn Openview 2023 Saas Benchmarks Report Openview 2023 Saas Benchmarks Report Focus on Main Product Features, Key Marketing Activities Developing new products and features can wait until the financial situation improves. If you have a product, stop supporting non-profitable features. If it’s a fitness tracking app, it can be personalized workout plans that require ongoing maintenance but aren't popular among users. Proper product analytics can help make such decisions. Testing new marketing strategies can also wait, but don’t fall into extremes. There’s no need to significantly slash marketing budgets if you have a positive ROMI and a validated strategy. Another mistake is cutting costs on activities that aren’t yet profitable but are soon to become key revenue streams. Rightsize Team, Compensations Review the team structure, and check if you don’t pay over-market rates, or if your teams aren’t too large. Ask for assistance from your board members, investors, and advisors. I often make a map of internal processes in Miro for portfolio companies, detailing all their operations and who’s responsible for each. It shows where they need to reorganize the team. Startups often reduce tech teams to lower burn. Once, our startup had such a costly development team they could create two products instead of one with that budget. Layoffs don’t commonly affect C-level positions. But given their high costs, you can make minor leadership roles part-time or engage high-paid specialists on an hourly or contract basis. Also, consider outsourcing or making some roles part-time in design, coding, marketing, legal and accounting services. When it comes to employee perks, think twice. Some startups cross off these benefits, but this isn’t right. Most companies don’t send their teams to exotic islands, and having some bananas in the office is nice and won’t cost you much. Case study of our portfolio company Case study of our portfolio company RedTrack.io, which develops a tool to track and analyze ad performance, reduced its monthly burn rate from $70k to $10-20k within a year. $70k to $10-20k In December 2022, the team saw they couldn’t cover their burn using available funds and cash collections. They had made changes to the product in mid-2022 but needed time to see how it would affect sales and revenue. At that point, the startup was running out of money. For the months ahead, the team planned cost-cutting combined with growth activities, intended to help the company approach zero burn. The startup suspended new R&D initiatives to focus on growing and selling its existing product. It also gave up the office, some subscriptions, and laid off part of the sales, marketing, development, and customer support specialists. However, the team reduction was minimal to allow the company to keep growing. The same logic applied to marketing budgets. Costs were capped so that growing revenues would cause a gradual decrease in burn. Also, the startup received convertible loans (CLAs) from investors and business angels and later obtained a credit line to cover cash gaps during the initial period of plan implementation. By actively securing annual deals with clients paid upfront, the startup achieved a positive cash flow while keeping an optimal net burn. In less than a year, by December 2023, its monthly revenue grew by 75% . 75% Сommunicate Cost-Cutting Smoothly The CEO shouldn’t just come and say to cut budgets and let half of the team go. C-level executives must consult with team leads and create a plan together — don’t just “inform” people. Define why you should cut costs, how much, which costs, and then communicate it with the team. Explain the reasons for downsizing to everyone, and say that the business isn’t closing but needs to be optimized. Setting priorities for this period and choosing a North Star metric can be helpful.

Don’t Take Bananas From the Office: How to Cut Costs Right to Lower Cash Burn Rate

As promised, this is the second (and final) part of the Startup Acquisition article, which will walk startup founders and leaders through the due diligence and negotiation processes. You can find the first part of the article here. Prepare a quantitative view of the business - financial statements, KPIs, and audit reports: This is perhaps one of the most critical steps to ensure that you’re representing the business accurately and in good faith to potential acquirers. The leadership team (and specifically the CFO, if you have one) should work with your accountant to prepare the historical financial statements (income statement, cash flow statement, and balance sheet) and gather the relevant audit reports. In Software/SaaS acquisitions, buyers will also focus on key metrics such as ARR growth, gross and net revenue retention, logo retention, gross margins, operating expenses, and burn rate. Most sellers also provide projected financials that show the business’ expected financial trajectory and serve as an important tool to convey the attractiveness of the business – especially if you have a credible methodology to forecast your revenue and ARR for the next couple of years based on existing sales pipeline and customer contracts.


Getting to the business end of the process – letter of intent (LOI) and due diligence (DD): Once you’ve selected a potential buyer based on initial conversations and bids, you will typically sign a (non-binding) letter of intent (LOI) that will give the selected buyer 4-8 weeks of exclusivity to complete due diligence and negotiation of final agreements. The buyer will also agree to a strict confidentiality clause as part of the LOI. In this phase, the buyer will both conduct management meetings and ask for documents / files that cover the product and technology, historical business performance (see step 4 above), key customer contracts, sales pipeline, employment contracts, and other relevant details about the operations, tax filings, and legal structure of the business. The seller typically opens a virtual data room (VDR) which is an online portal to share all these documents and answer questions from the buyer.
If you have an investment bank representing you, the bank will work with you to prepare you for the relevant meetings and collect the data. However, if you don’t have a bank representing you, the leadership team will need to work with your lawyer to gather all this information and answer relevant questions from the buyer. Note that this process is time consuming, and you might not always have what the buyer is asking for. When you don’t have the information, it’s important to understand the buyer’s intent behind specific requests and work with them to answer questions based on available information.

Getting to the finish line and preparing for what comes next: First thing to keep in mind is that the LOI is a non-binding agreement. If through the diligence process the buyer finds concerns with the business, they have the right to walk away from the transaction. Most buyers are mindful of their reputation in the M&A circles and will only walk away if there are issues that are real deal breakers, but you must be prepared for this eventuality.
Assuming the diligence process goes smoothly, about 2-3 weeks before the exclusivity period runs out, you should start working with your lawyer to negotiate a sale & purchase agreement (SPA) and employment contracts (for employees who will work for the buyer after the acquisition). Startup founders should think carefully about what percentage of their payout they’re willing to receive in stock (i.e. buyers’ stock) and how long (and in which role) they are willing to work for the buyer after the acquisition. Buyers like paying part of the acquisition price in stock because it both reduces the upfront cash payment and helps ensure that the seller has a vested interest in making the acquisition a success. M&A processes are not easy to navigate and require dealing with a lot of scrutiny and uncertainty along the way. Therefore, it’s important to be aware of what you’re getting into and prepare beforehand to make the process as streamlined as possible. Hopefully this article was a helpful start for those who are new to the process and stay tuned for more content related to startups, technology, and M&A! As promised, this is the second (and final) part of the Startup Acquisition article, which will walk startup founders and leaders through the due diligence and negotiation processes. You can find the first part of the article here . here Prepare a quantitative view of the business - financial statements, KPIs, and audit reports: This is perhaps one of the most critical steps to ensure that you’re representing the business accurately and in good faith to potential acquirers. The leadership team (and specifically the CFO, if you have one) should work with your accountant to prepare the historical financial statements (income statement, cash flow statement, and balance sheet) and gather the relevant audit reports. In Software/SaaS acquisitions, buyers will also focus on key metrics such as ARR growth, gross and net revenue retention, logo retention, gross margins, operating expenses, and burn rate. Most sellers also provide projected financials that show the business’ expected financial trajectory and serve as an important tool to convey the attractiveness of the business – especially if you have a credible methodology to forecast your revenue and ARR for the next couple of years based on existing sales pipeline and customer contracts. Getting to the business end of the process – letter of intent (LOI) and due diligence (DD): Once you’ve selected a potential buyer based on initial conversations and bids, you will typically sign a (non-binding) letter of intent (LOI) that will give the selected buyer 4-8 weeks of exclusivity to complete due diligence and negotiation of final agreements. The buyer will also agree to a strict confidentiality clause as part of the LOI. In this phase, the buyer will both conduct management meetings and ask for documents / files that cover the product and technology, historical business performance (see step 4 above), key customer contracts, sales pipeline, employment contracts, and other relevant details about the operations, tax filings, and legal structure of the business. The seller typically opens a virtual data room (VDR) which is an online portal to share all these documents and answer questions from the buyer.
If you have an investment bank representing you, the bank will work with you to prepare you for the relevant meetings and collect the data. However, if you don’t have a bank representing you, the leadership team will need to work with your lawyer to gather all this information and answer relevant questions from the buyer. Note that this process is time consuming, and you might not always have what the buyer is asking for. When you don’t have the information, it’s important to understand the buyer’s intent behind specific requests and work with them to answer questions based on available information. Getting to the finish line and preparing for what comes next: First thing to keep in mind is that the LOI is a non-binding agreement. If through the diligence process the buyer finds concerns with the business, they have the right to walk away from the transaction. Most buyers are mindful of their reputation in the M&A circles and will only walk away if there are issues that are real deal breakers, but you must be prepared for this eventuality.
Assuming the diligence process goes smoothly, about 2-3 weeks before the exclusivity period runs out, you should start working with your lawyer to negotiate a sale & purchase agreement (SPA) and employment contracts (for employees who will work for the buyer after the acquisition). Startup founders should think carefully about what percentage of their payout they’re willing to receive in stock (i.e. buyers’ stock) and how long (and in which role) they are willing to work for the buyer after the acquisition. Buyers like paying part of the acquisition price in stock because it both reduces the upfront cash payment and helps ensure that the seller has a vested interest in making the acquisition a success. Prepare a quantitative view of the business - financial statements, KPIs, and audit reports: This is perhaps one of the most critical steps to ensure that you’re representing the business accurately and in good faith to potential acquirers. The leadership team (and specifically the CFO, if you have one) should work with your accountant to prepare the historical financial statements (income statement, cash flow statement, and balance sheet) and gather the relevant audit reports. In Software/SaaS acquisitions, buyers will also focus on key metrics such as ARR growth, gross and net revenue retention, logo retention, gross margins, operating expenses, and burn rate. Most sellers also provide projected financials that show the business’ expected financial trajectory and serve as an important tool to convey the attractiveness of the business – especially if you have a credible methodology to forecast your revenue and ARR for the next couple of years based on existing sales pipeline and customer contracts. Prepare a quantitative view of the business - financial statements, KPIs, and audit reports: This is perhaps one of the most critical steps to ensure that you’re representing the business accurately and in good faith to potential acquirers. The leadership team (and specifically the CFO, if you have one) should work with your accountant to prepare the historical financial statements (income statement, cash flow statement, and balance sheet) and gather the relevant audit reports. In Software/SaaS acquisitions, buyers will also focus on key metrics such as ARR growth, gross and net revenue retention, logo retention, gross margins, operating expenses, and burn rate. Most sellers also provide projected financials that show the business’ expected financial trajectory and serve as an important tool to convey the attractiveness of the business – especially if you have a credible methodology to forecast your revenue and ARR for the next couple of years based on existing sales pipeline and customer contracts. Prepare a quantitative view of the business - financial statements, KPIs, and audit reports: Getting to the business end of the process – letter of intent (LOI) and due diligence (DD): Once you’ve selected a potential buyer based on initial conversations and bids, you will typically sign a (non-binding) letter of intent (LOI) that will give the selected buyer 4-8 weeks of exclusivity to complete due diligence and negotiation of final agreements. The buyer will also agree to a strict confidentiality clause as part of the LOI. In this phase, the buyer will both conduct management meetings and ask for documents / files that cover the product and technology, historical business performance (see step 4 above), key customer contracts, sales pipeline, employment contracts, and other relevant details about the operations, tax filings, and legal structure of the business. The seller typically opens a virtual data room (VDR) which is an online portal to share all these documents and answer questions from the buyer. If you have an investment bank representing you, the bank will work with you to prepare you for the relevant meetings and collect the data. However, if you don’t have a bank representing you, the leadership team will need to work with your lawyer to gather all this information and answer relevant questions from the buyer. Note that this process is time consuming, and you might not always have what the buyer is asking for. When you don’t have the information, it’s important to understand the buyer’s intent behind specific requests and work with them to answer questions based on available information. Getting to the business end of the process – letter of intent (LOI) and due diligence (DD): Once you’ve selected a potential buyer based on initial conversations and bids, you will typically sign a (non-binding) letter of intent (LOI) that will give the selected buyer 4-8 weeks of exclusivity to complete due diligence and negotiation of final agreements. The buyer will also agree to a strict confidentiality clause as part of the LOI. In this phase, the buyer will both conduct management meetings and ask for documents / files that cover the product and technology, historical business performance (see step 4 above), key customer contracts, sales pipeline, employment contracts, and other relevant details about the operations, tax filings, and legal structure of the business. The seller typically opens a virtual data room (VDR) which is an online portal to share all these documents and answer questions from the buyer. Getting to the business end of the process – letter of intent (LOI) and due diligence (DD): If you have an investment bank representing you, the bank will work with you to prepare you for the relevant meetings and collect the data. However, if you don’t have a bank representing you, the leadership team will need to work with your lawyer to gather all this information and answer relevant questions from the buyer. Note that this process is time consuming, and you might not always have what the buyer is asking for. When you don’t have the information, it’s important to understand the buyer’s intent behind specific requests and work with them to answer questions based on available information. Getting to the finish line and preparing for what comes next: First thing to keep in mind is that the LOI is a non-binding agreement. If through the diligence process the buyer finds concerns with the business, they have the right to walk away from the transaction. Most buyers are mindful of their reputation in the M&A circles and will only walk away if there are issues that are real deal breakers, but you must be prepared for this eventuality. Assuming the diligence process goes smoothly, about 2-3 weeks before the exclusivity period runs out, you should start working with your lawyer to negotiate a sale & purchase agreement (SPA) and employment contracts (for employees who will work for the buyer after the acquisition). Startup founders should think carefully about what percentage of their payout they’re willing to receive in stock (i.e. buyers’ stock) and how long (and in which role) they are willing to work for the buyer after the acquisition. Buyers like paying part of the acquisition price in stock because it both reduces the upfront cash payment and helps ensure that the seller has a vested interest in making the acquisition a success. Getting to the finish line and preparing for what comes next: First thing to keep in mind is that the LOI is a non-binding agreement. If through the diligence process the buyer finds concerns with the business, they have the right to walk away from the transaction. Most buyers are mindful of their reputation in the M&A circles and will only walk away if there are issues that are real deal breakers, but you must be prepared for this eventuality. Getting to the finish line and preparing for what comes next: Assuming the diligence process goes smoothly, about 2-3 weeks before the exclusivity period runs out, you should start working with your lawyer to negotiate a sale & purchase agreement (SPA) and employment contracts (for employees who will work for the buyer after the acquisition). Startup founders should think carefully about what percentage of their payout they’re willing to receive in stock (i.e. buyers’ stock) and how long (and in which role) they are willing to work for the buyer after the acquisition. Buyers like paying part of the acquisition price in stock because it both reduces the upfront cash payment and helps ensure that the seller has a vested interest in making the acquisition a success. M&A processes are not easy to navigate and require dealing with a lot of scrutiny and uncertainty along the way. Therefore, it’s important to be aware of what you’re getting into and prepare beforehand to make the process as streamlined as possible. Hopefully this article was a helpful start for those who are new to the process and stay tuned for more content related to startups, technology, and M&A!

Startup Acquisitions: How to Navigate an Acquisition Process as a Seller (Part 2 of 2)

Adquisiciones de empresas emergentes: cómo abordar un proceso de adquisición como vendedor (segunda parte de dos)

Achieving Optimal Service Reliability: Insights Into Service Level Objectives (SLOs)

Architectural Foundations for Startups: Translating Business Into Tech

স্টার্টআপের জন্য আর্কিটেকচারাল ফাউন্ডেশন: টেক-এ ব্যবসার অনুবাদ

Architektonische Grundlagen für Startups: Business in Technologie umsetzen

Fundamentos arquitectónicos para startups: traducir los negocios en tecnología

Fondements architecturaux pour les startups : traduire le business en technologie

स्टार्टअप्स के लिए वास्तुशिल्पीय आधार: व्यवसाय को तकनीक में बदलना

スタートアップのためのアーキテクチャ基盤: ビジネスをテクノロジーに翻訳する

스타트업을 위한 건축적 기초: 비즈니스를 기술로 전환

Fundamentos arquitetônicos para startups: traduzindo negócios em tecnologia

Архитектурные основы для стартапов: перевод бизнеса в технологии

Girişimler İçin Mimari Temeller: İşletmeyi Teknolojiye Çevirmek

Nền tảng kiến trúc cho các công ty khởi nghiệp: Chuyển đổi kinh doanh thành công nghệ

初创企业的架构基础：将业务转化为技术

One of the most repeated questions I get is: how do I evaluate whether I should join an early seed-stage startup? Embarking on a journey with a startup is akin to taking a leap of faith. While there's no guarantee of success, conducting due diligence can significantly mitigate risks. Having been in such a position a couple of times myself, I wanted to share the framework I use that may help you make your decision. For a quick background, the first startup I joined after my undergrad, MIME360, was acquired by Flipkart to build out its digital store. The four years I worked at Flipkart, it went through a hyper-growth phase to become India's biggest eCommerce company. After doing my Masters in Computer Science from Columbia University, I was fortunate to find another set of high performers with TellApart. TellApart ended up being Twitter's biggest acquisition, and I was fortunate to be part of that journey too. After spending 6 years building ad products at Twitter, I wanted to get back to early-stage companies, which led me to join Frec as a founding engineer. Frec is a fintech startup, democratizing complex financial instruments which were previously accessible to a wealthy few. Unlike MIME360 and TellApart, where I was very early in my career and also just at the right place at the right time, Frec was a very intentional decision. I had worked with some of the other founding engineers before, so I was confident the team was capable of executing. Josh McFarland (TellApart founder) was the lead investor from Greylock, so that was another huge vote of confidence. When I spoke to Mo Al Adham, the founder of Frec, his thoughts about the team and product-market fit complimented mine, and I was convinced I was making the right decision. Given my prior experience with small and medium-sized start-ups, some of my friends/colleagues reach out to me to help evaluate a startup they’re considering joining. Joining a new company is a big step, both personally and professionally. Making an informed decision is much easier with public companies since a lot of resources/metrics that you might need are already available like revenue growth, median salary for your role, opinion of current and past employees, etc. Such data is generally not available for most startups, especially the early-stage ones (pre-series B) which makes it quite a risky prospect. We know start-ups are inherently hard, and while there is no guarantee of success, you can definitely mitigate some risk by doing your own due diligence. Most start-ups are aware of this and are willing to share information with potential employees within reasonable limits. It's essential to remember that joining a startup is not just about being hired; it's a mutual exploration where you are interviewing the company as much as they are interviewing you. Before saying yes to joining a startup, it's crucial to have a clear understanding of what you aim to gain from the experience. With the hope that it can help others as well, I am sharing some of the things I considered when making my decision to join Frec. Product Understanding the product is fundamental as it forms the cornerstone of the startup's existence. What problem are you trying to solve? What positions you to best solve this problem? Do you have product-market fit (PMF)? If not, what does PMF look like to you? In other words, what metrics will convince you that you've attained PMF? Who are your primary competitors, and what differentiates you from them? What is the biggest pain point for your product/customers right now? Who is the target audience?

As a side note, it always helps if it’s a product you believe you will actually use (now or in the future) Company Evaluating the company's overall health and trajectory is vital for long-term commitment. You don't want to join a company for 6 months for it to run out of money. These questions will help evaluate the health of the company and what are their plans for the next 1-2 years. What's your burn rate and what are your future funding plans? Alternate: What is the current runway?
How much is the current revenue (if any)? Future plans for revenue streams? Team The dynamics and cohesion within the team can significantly impact your experience and success within the startup. Even if there is no financial success, you can still gain a lot by working with a high-performing team. Has anyone already left the company, and if so, why?
How do you facilitate onboarding for new team members?
How do people collaborate and resolve conflicts within the team?
What is the company’s policy on remote or flexible work?
How often do people work from the office? (This might have a significant impact on your decision as well. Early in your career, you want to work with people in the office as much as possible) Founder Understanding the vision and leadership style of the founder(s) can provide insights into the startup's direction. Is this the founder’s first startup or do they have previous exits?


Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well.



For solo founders: Why do it solo considering the percentage of success from solo founders is less? How does the founder brainstorm ideas? For multiple founders: How are conflicts resolved, and how are decisions made? Investors The motivations behind investor backing can shed light on the perceived potential of the startup from a third party. A lot of times startups will let you talk to their investors too. If you’ve already cleared the interviews, then they'll try hard to sell you. You should research the quality of investors backing the company, their past bets, success rate, etc. Why did the investors choose to invest in the founder/company? Are they betting on the team or the product?


What does PMF look like to them?


Hopefully, it’s aligned with Founders vision




Is the press related to the investment? Role Clarifying your role and expectations ensures alignment between personal growth and company objectives. For technical roles, understanding the technological landscape is crucial. A lot of times I’ve seen engineers burnt out by simply using bad tools for the job. How does my role contribute to improving the product?
What does success look like in this role, and how will I be measured? Alternate: Who is your ideal candidate?
What is the technology stack?
What processes are in place for planning, testing, and code reviews?
What is the on-call rotation like? How is deployment managed? As you might have noticed, we're intentionally skipping compensation/benefits in this set of questions, since it can be a post on its own. Not to mention startup compensation gets really complex with ISOs, options, PPU, 409a evaluation, strike price, exercise price, etc. Another aspect not covered that might be crucial to you is immigration-related questions in case you need a work visa. Remember, this isn't meant to be a comprehensive list. You might care about some criteria more than others. By asking the right questions and delving deep into various aspects of the startup, you can make an informed choice that aligns with your career goals and aspirations. One of the most repeated questions I get is: how do I evaluate whether I should join an early seed-stage startup? Embarking on a journey with a startup is akin to taking a leap of faith. While there's no guarantee of success, conducting due diligence can significantly mitigate risks. Having been in such a position a couple of times myself, I wanted to share the framework I use that may help you make your decision. For a quick background, the first startup I joined after my undergrad, MIME360, was acquired by Flipkart to build out its digital store. The four years I worked at Flipkart, it went through a hyper-growth phase to become India's biggest eCommerce company. After doing my Masters in Computer Science from Columbia University, I was fortunate to find another set of high performers with TellApart. TellApart ended up being Twitter's biggest acquisition, and I was fortunate to be part of that journey too. After spending 6 years building ad products at Twitter, I wanted to get back to early-stage companies, which led me to join Frec as a founding engineer. Frec is a fintech startup, democratizing complex financial instruments which were previously accessible to a wealthy few. Unlike MIME360 and TellApart, where I was very early in my career and also just at the right place at the right time, Frec was a very intentional decision. I had worked with some of the other founding engineers before, so I was confident the team was capable of executing. Josh McFarland (TellApart founder) was the lead investor from Greylock, so that was another huge vote of confidence. When I spoke to Mo Al Adham, the founder of Frec, his thoughts about the team and product-market fit complimented mine, and I was convinced I was making the right decision. Given my prior experience with small and medium-sized start-ups, some of my friends/colleagues reach out to me to help evaluate a startup they’re considering joining. Joining a new company is a big step, both personally and professionally. Making an informed decision is much easier with public companies since a lot of resources/metrics that you might need are already available like revenue growth, median salary for your role, opinion of current and past employees, etc. Such data is generally not available for most startups, especially the early-stage ones (pre-series B) which makes it quite a risky prospect. We know start-ups are inherently hard, and while there is no guarantee of success, you can definitely mitigate some risk by doing your own due diligence. Most start-ups are aware of this and are willing to share information with potential employees within reasonable limits. It's essential to remember that joining a startup is not just about being hired; it's a mutual exploration where you are interviewing the company as much as they are interviewing you. Before saying yes to joining a startup, it's crucial to have a clear understanding of what you aim to gain from the experience. With the hope that it can help others as well, I am sharing some of the things I considered when making my decision to join Frec. Product Understanding the product is fundamental as it forms the cornerstone of the startup's existence. Understanding the product is fundamental as it forms the cornerstone of the startup's existence. What problem are you trying to solve? What positions you to best solve this problem? What problem are you trying to solve? What positions you to best solve this problem? Do you have product-market fit (PMF)? If not, what does PMF look like to you? In other words, what metrics will convince you that you've attained PMF? Do you have product-market fit (PMF)? If not, what does PMF look like to you? In other words, what metrics will convince you that you've attained PMF? Who are your primary competitors, and what differentiates you from them? Who are your primary competitors, and what differentiates you from them? What is the biggest pain point for your product/customers right now? What is the biggest pain point for your product/customers right now? Who is the target audience?

As a side note, it always helps if it’s a product you believe you will actually use (now or in the future) Who is the target audience? As a side note, it always helps if it’s a product you believe you will actually use (now or in the future) As a side note, it always helps if it’s a product you believe you will actually use (now or in the future) As a side note, it always helps if it’s a product you believe you will actually use (now or in the future) Company Evaluating the company's overall health and trajectory is vital for long-term commitment. You don't want to join a company for 6 months for it to run out of money. These questions will help evaluate the health of the company and what are their plans for the next 1-2 years. Evaluating the company's overall health and trajectory is vital for long-term commitment. What's your burn rate and what are your future funding plans? Alternate: What is the current runway? How much is the current revenue (if any)? Future plans for revenue streams? What's your burn rate and what are your future funding plans? Alternate: What is the current runway? How much is the current revenue (if any)? Future plans for revenue streams? Team The dynamics and cohesion within the team can significantly impact your experience and success within the startup. Even if there is no financial success, you can still gain a lot by working with a high-performing team. The dynamics and cohesion within the team can significantly impact your experience and success within the startup. Has anyone already left the company, and if so, why? How do you facilitate onboarding for new team members? How do people collaborate and resolve conflicts within the team? What is the company’s policy on remote or flexible work? How often do people work from the office? (This might have a significant impact on your decision as well. Early in your career, you want to work with people in the office as much as possible) Has anyone already left the company, and if so, why? How do you facilitate onboarding for new team members? How do people collaborate and resolve conflicts within the team? What is the company’s policy on remote or flexible work? How often do people work from the office? (This might have a significant impact on your decision as well. Early in your career, you want to work with people in the office as much as possible) Founder Understanding the vision and leadership style of the founder(s) can provide insights into the startup's direction. Understanding the vision and leadership style of the founder(s) can provide insights into the startup's direction. Is this the founder’s first startup or do they have previous exits?


Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well. For solo founders: Why do it solo considering the percentage of success from solo founders is less? How does the founder brainstorm ideas? Is this the founder’s first startup or do they have previous exits? Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well. Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well. Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well. Note: Founders with previous exists (IPO/acquisitions) have done it before and know the recipe well. For solo founders: Why do it solo considering the percentage of success from solo founders is less? How does the founder brainstorm ideas? For multiple founders: How are conflicts resolved, and how are decisions made? For multiple founders: How are conflicts resolved, and how are decisions made? Investors The motivations behind investor backing can shed light on the perceived potential of the startup from a third party. The motivations behind investor backing can shed light on the perceived potential of the startup from a third party. A lot of times startups will let you talk to their investors too. If you’ve already cleared the interviews, then they'll try hard to sell you. You should research the quality of investors backing the company, their past bets, success rate, etc. A lot of times startups will let you talk to their investors too. If you’ve already cleared the interviews, then they'll try hard to sell you. You should research the quality of investors backing the company, their past bets, success rate, etc. Why did the investors choose to invest in the founder/company? Are they betting on the team or the product? What does PMF look like to them?


Hopefully, it’s aligned with Founders vision Is the press related to the investment? Why did the investors choose to invest in the founder/company? Are they betting on the team or the product? Why did the investors choose to invest in the founder/company? Are they betting on the team or the product? What does PMF look like to them? Hopefully, it’s aligned with Founders vision What does PMF look like to them? Hopefully, it’s aligned with Founders vision Hopefully, it’s aligned with Founders vision Hopefully, it’s aligned with Founders vision Is the press related to the investment? Is the press related to the investment? Role Clarifying your role and expectations ensures alignment between personal growth and company objectives. Clarifying your role and expectations ensures alignment between personal growth and company objectives. For technical roles, understanding the technological landscape is crucial. A lot of times I’ve seen engineers burnt out by simply using bad tools for the job. How does my role contribute to improving the product? What does success look like in this role, and how will I be measured? Alternate: Who is your ideal candidate? What is the technology stack? What processes are in place for planning, testing, and code reviews? What is the on-call rotation like? How is deployment managed? How does my role contribute to improving the product? What does success look like in this role, and how will I be measured? Alternate: Who is your ideal candidate? What is the technology stack? What processes are in place for planning, testing, and code reviews? What is the on-call rotation like? How is deployment managed? As you might have noticed, we're intentionally skipping compensation/benefits in this set of questions, since it can be a post on its own. Not to mention startup compensation gets really complex with ISOs, options, PPU, 409a evaluation, strike price, exercise price, etc. compensation/benefits Another aspect not covered that might be crucial to you is immigration-related questions in case you need a work visa. Remember, this isn't meant to be a comprehensive list. You might care about some criteria more than others. By asking the right questions and delving deep into various aspects of the startup, you can make an informed choice that aligns with your career goals and aspirations.

Beyond the Offer Letter: Questions Every Startup Candidate Should Ask

I sold my startup because of bugs: I wish I had this serverless repository! In 2021, I built a startup called Linvo, a LinkedIn automation tool. It generated good money but also had a high burn rate. I can tell you that I lost most of my money as a young entrepreneur (entirely bootstrapped) 😆 The problem with my system is that it kept on failing; I am not the best programmer in the world, but let me elaborate. Puppeteer Sucks Your Memory Linvo went into a few iterations during its lifetime. I used the tech that I know: React and NestJS. Basically, any automated cloud scraping goes into making tasks and then solving them. It looks something like this: Cron runs every 10 minutes, looks for new stuff to do, and sends it to the queue. Workers take tasks from the queue and process them. Save everything to the DB. This is a very naive solution that was running on multiple EC2 (AWS) and Redis. In theory, it should work - Yes, you would need to scale the workers horizontally, but that was not my problem. I started to experience something else - memory leaks. As you probably know, - a chromium automated browser, is heavy (same as Chrome on your computer), and I was running lots of them - they sucked both my memory - causing the servers to stop working and taking the internet bandwidth. Puppeteer Needed a Solution Refactoring sounds like - yeah, let's do that, but my Intercom support was filled with support tickets (I already had many users), and I knew I had to create some crazy refactoring. I had an idea for a solution - let's use AWS lambda. Lambda start Do the task Die (most of the time) It doesn't suck your internet. It will die and not cause a memory leak. It's a bit more expensive because Lambdas were not meant to run indefinitely—that would remove the whole concept, but I was desperate. (Well, the good thing is that you don't need to think about scale.) Here is the new infrastructure: Event bridge cron running every 1 minute (that's the minimum) Lambda that creates six events for the queue (making it like the cron runs every 10 seconds) SQS queue (bye bye, Redis) Lambdas shooting out with auto-scaling (yay?) Vendor Locking As you probably understand from the context - now I am all in with AWS, but I didn't mind - only how I would test it on my computer. Back in the day, I used . It's almost the same as to create the entire environment quickly. Sam Serverless And yes, they do bring some local testing. They can take your lambdas and turn them into endpoints! Yay! But I was using Event Bridge, SQS, and Lambdas. That was just not possible. I have encountered . It was supposed to help me build an entire AWS stack on my computer, but many things were not supported back then, such as Lambda layers. And I was overwhelmed in using it. localstack So I started to create my "own" infrastructure where I deployed one "test" SQS on AWS and ran local code with it (a function that calls a function), and it was - bad. I did not work well in production; I felt like the word was squeezing up on me back in the day. I just wanted to get rid of this startup; I even offered it to people for free, taking the customers and rid myself of that problem. Long story short, I managed to sell the system for a low price, but lately, I discovered something interesting. Winglang - Typescript-like dialect for the Cloud I guess my pain was real, and even though I would be happier to find this back in the day - I am glad it's alive today. helps you to build the same cloud infrastructure as I used, but the nice thing is: Winglang It doesn't require you to use any configuration files. You basically define the entire infrastructure with code (you can check their entire preflight and inflight documentation). You can run it locally - thank you, god, 🙏🏻🙏🏻🙏🏻🙏🏻 with all the infrastructure included. You can deploy it to any cloud provider, and you don't have to use AWS. They can literally generate any Terraform or cloud formation for easy deployment. I talked to the founder of Winglang, Elad (builder of the famous CDK), and he said something that made me twitch. You can literally work on your projects when you are on an airplane and write tests for it 🤯 I can't give them enough stars myself - but do me a favor and star their repository and of course, use it for your next project. https://github.com/winglang/wing Final Words I am angry at Winglang. I wish they had done it sooner. Now they show up. When it's all about AI? I started a new YouTube channel mostly about Tech, open-source, and marketing :) If that's something that interests you, feel free to subscribe to it here: https://www.youtube.com/@nevo-david?sub_confirmation=1

I Sold My Startup Because of Bugs: I Wish Winglang Existed Back Then

, the disruptive Web3 Neobank platform specializing in telecom transactions, proudly announces the ZBU Phoenix Protocol, a strategic initiative focused on optimizing token supply and solidifying its commitment to ecosystem sustainability. Zeebu Zeebu is a blockchain-based platform specifically engineered for telecom transactions. It aims to revolutionize the sector by enabling automated settlements, facilitating seamless global payments, and bolstering efficiency and security through a unified telecom payment ecosystem. The ZBU token is a key component of the Zeebu platform. It plays a pivotal role in enabling smooth global transactions and introducing an on-chain loyalty mechanism. The ZBU loyalty token serves to incentivize and reward partners within the ecosystem for their active participation. The ZBU Phoenix Protocol, inspired by the phoenix's symbolic rebirth and renewal, meticulously reduces the total ZBU token supply, fostering market stability and a robust ecosystem. This deliberate approach emphasizes Zeebu's core values of trust, transparency, and long-term sustainability. The ZBU Phoenix Protocol focuses on optimizing the ZBU token supply through a dynamic auto-burn mechanism. This mechanism carefully adjusts the burn rate based on the current market price of ZBU and platform usage patterns, ensuring a strategic approach to bolstering the ecosystem's health and long-term stability. Transparency and accountability are at the forefront of Zeebu's operations. Each token burn event will be meticulously recorded and publicly accessible on the blockchain, providing stakeholders with full visibility into the process. Additionally, a portion of the tokens from the accumulated burning pool will be allocated towards new initiatives, further enriching the Zeebu ecosystem. “The ZBU Token Burn Program reflects our commitment to innovation and sustainability in the decentralized finance space,” said Raj Brahmbhatt, the CEO and Founder of Zeebu. “By implementing this initiative, we aim to ensure a stable market presence of $ZBU token while also promoting ecosystem growth.” As Zeebu continues to spearhead innovation in the realm of decentralized finance, the ZBU Token Burn Program serves as a cornerstone of its strategic vision. By reducing token supply systematically and transparently, Zeebu is poised to create a more resilient and prosperous financial ecosystem for all stakeholders. Zeebu is gearing up to release more specifics about the timeline and quantity for the ZBU token burn. The comprehensive information about the Phoenix Protocol can be found . here About Zeebu: ‍Zeebu, the pioneering Web3 Neobank, having settled more than half a billion in telecom transactions, is quickly emerging as a trusted payment and settlement partner for global telecom businesses. The platform, currently serving over 100 active telecom carriers, is revolutionizing the industry with the introduction of blockchain-based settlements and the ZBU loyalty token. The ZBU token is designed to facilitate instant and secure global transactions and reward participants for successful settlements on the platform.

Web3 Payment Platform Announced Burning of 236 Million Tokens

Startups of The Year 2023 Winners: North America 

Securing funds from an investor is a huge milestone for any tech . To increase your chances of being noticed and chosen, you need to know precisely what they’re looking for and how you should adapt. startup Do You Need to Adapt Your Startup? Even if you think your product is innovative and will be incredibly successful, investors need more to go on than passion and drive. After all, nearly 67% of startups never achieve positive returns. If you want to be the one they choose to fund, you should really pay attention to what buyers are looking for and adapt accordingly. What Investors Dislike in a Tech Startup If investors view your tech startup as too big of a risk, they’ll be much less likely to purchase it. An Overreliance on Investors While a high valuation is an incredible accomplishment, it doesn’t guarantee future stability or safeguard future investments. If investors believe you’re relying too much on temporary funding to offset outstanding debt and expenditures, they might view the purchase as a risk. Excess Debt and Expenditures If you’re like most tech startups, you have company debt. Although it’s a normal part of entrepreneurship, it can be a pain point for investors. Typically, substantial outstanding dues are incredibly significant to investors when your business model isn’t profitable or has low growth potential. The bigger the financial risk, the less likely they’ll take interest in you. When looking at your debts, they’ll also consider your burn rate — your monthly expenditures before you generate revenue independently — to see how much runway you have. In other words, they want to know how much time you have left before your funding dries up. For startups, an acceptable burn rate is six to 12 months on average. To calculate yours, divide your total capital by your monthly operating expenses. Investors might consider you too risky if you have fewer than six months left of operation. Unclear Business Growth Investors will only be interested in buying your tech startup if you have measurable, accurate figures to show them. If they don’t know your key performance indicators, average expenditures, and baselines, then they can’t project your success — and may view the purchase as too risky. Barriers to Market Entry Where are you at in bringing your product to market? Have you secured patents and acquired customers? Even if your concept is innovative and promising, investors will want to see proof of concept before buying. The Technology Readiness Levels are a baseline tech startups can use to assess their technology’s maturity and potential. Typically, investors will be wary of anything under a seven — a working model — because they’d be purchasing a startup for its prototype. If you haven’t entered the market yet, you’re a risky investment. Lack of Industry Experience In the tech sector, experience is everything. Investors will be much less inclined to buy your startup if they don’t view you as informed or competent. A lack of industry knowledge proves you’re unfamiliar with the market and its risks. What Investors Prefer in a Tech Startup If you want to be more appealing to investors looking to buy a tech startup, you must prove your competency, competitiveness, and scalability. Scalability Before buying startups, the number one thing investors look for is scalability. Even if you already possess stable revenue and a loyal customer base, they need to know you can increase your market share and outperform the competition. If your niche is large or competitive, a smaller is acceptable. As long as you have a high valuation and strong financial projections, investors will be willing to overlook a shallow revenue stream. market share Innovation There’s a good chance your startup isn’t revolutionary. Realistically, you’re not the next Netflix or Facebook. However, you don’t need to reinvent your niche — you only need to shake things up. Buyers look for innovation because it guarantees a large market share and a customer base. Many artificial intelligence startups generate billions of dollars annually because they entered the market before the technology became big. Even though the niche is oversaturated now, the original few were impactful enough to leave an impression. Market Appeal You need to have a strong market appeal to lure investors. In other words, your product or service must offer a solution to a significant consumer pain point. When buyers acquire a startup, they want to know it will have a loyal, resilient customer base. Competitive Advantages You’ve probably figured out how fierce competition is in the tech industry by now. That said, investors will want measurable figures rather than personal anecdotes. You’ll appeal to them if you conduct a market analysis to gauge your competitors. Usually, investors want to know your strategy for distinguishing yourself from the competition. Also, they look for solid competitive advantages. If your product isn’t easily replicable and not already on the market, purchasing your startup will be much more attractive to them. Exit Strategy A pre-prepared exit strategy shows you’re realistic and knowledgeable. According to a Harvard Business Review survey, around 70% of founders spend minimal or no time planning for when they leave. If you want to make yourself appealing to investors looking to purchase your startup, you need this plan. Even if you expect your exit to happen a specific way, prepare for all other possible contingencies. Readying a comprehensive strategy in advance alleviates stress and makes you look more competent to buyers. Increase Your Odds of Securing Funds Having the business sense to restrategize in order to attract investors is a smart move. If you can prove your startup stands out and has the data-based projections to prove it, you’ll have a much better chance at securing funds.

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