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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/07\/29\/techcrunch-roundup-saas-burn-multiples-8-fintech-vcs-spill-the-tea-all-my-apes-gone\/<\/a><\/br> Despite the ongoing correction in the public markets, mass layoffs in the tech sector and high inflation, U.S. Treasury Secretary Janet Yellen says we\u2019re not yet in a recession.<\/p>\n At the same time, it\u2019s taking a lot longer to secure startup funding than it did just a few months ago, which means many companies are burning cash faster than they can raise it.<\/p>\n Full TechCrunch+ articles are only available to members. For SaaS startups, laying off staff and going fully remote isn\u2019t enough: to add more time to the countdown clock, founders must calculate their burn multiple (net burn\/net new ARR), says Alex Zekoff, CEO and co-founder of Thoughtful Automation:<\/p>\n The gold standard is a burn multiple of one \u2014 for every dollar you burn, you add a net new dollar in subscription revenue. At less than zero, you are in a cash-flow-positive position, which is really hard to do. But say that you are burning $2 million in a quarter, and you are only adding $500,000 of net new ARR. You are at a 4x burn multiple, and you probably need to start thinking about how to reduce that.<\/p>\n<\/blockquote>\n Thanks very much for reading, and have a great weekend.<\/p>\n Walter Thompson
\nTechCrunch+ roundup: SaaS burn multiples, 8 fintech VCs spill the tea, all my apes gone<\/br>
\n2023-01-20 22:24:48<\/br><\/p>\n
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Use discount code TCPLUSROUNDUP<\/strong><\/a> to save 20% off a one- or two-year subscription.<\/i><\/p>\n
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Editorial Manager, TechCrunch+
@yourprotagonist<\/a><\/p>\nThe right questions to ask investors when fundraising in a down market<\/h2>\n