swombat.com

daily articles for founders

Running a startup in the UK (or with a UK subsidiary)? Get in touch with my company, GrantTree. We help with government funding.
Silicon Valley burn rates  

How much money do those Silicon Valley companies burn every month?

Insane amounts, it seems. If Fred Wilson's post is correct (and I see no reason to doubt it), the average pre-revenue seed company is burning as much as $50k a month. Companies trying to accumulate users double that. And companies trying to "build the business" spend as much as $250k every month.

Compare this with London (hardly a cheap city), where most startups that I've dealt with (and whose accounts I've discussed with them) burn anything from £0 to maybe a few thousand pounds a month - at least until they hit revenues - and then try to grow organically.

It's a different world... One wonders why Silicon Valley VCs don't invest more here. If burn rates are an indication, building a business is about 10x cheaper in London than in Silicon Valley.

More from the library:
How to hire a programmer
Build apps not businesses
Entrepreneurial sales lessons