The Burn Multiple

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The burn rate is a key metric for high-growth startups.

This is the amount of cash being spent over and above the cash revenue taken in.

The Burn Multiple is the amount of cash being burned divided by the net revenue.

This metric indicates how fast the money is being spent compared to the growth rate.

For startups that are in high-growth mode, this metric ranges from 1 to 5X.

The lower the multiple, the more efficient the business.

In diligencing a startup, calculate the Burn Multiple to check the capital efficiency.

Most healthy startups run in the 1x to 2x range.

Anything below 1x is outstanding.

Anything above 2x is in the questionable zone.

Anything above 3x is in the danger zone.

The Burn Multiple by itself doesn’t give the full story.

But it does indicate the capital efficiency of the business or the lack thereof.

Calculate the Burn Multiple for your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

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The Benefit of Investing in Tranches

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Tranching the investment means breaking it down into tranches or rounds.

Tranche comes from the French word meaning slice.

Investors find it advantageous to break their investment into rounds.

In the angel world, many investors break their allocation to a startup into two rounds.

The first round goes in at the beginning of the investor engagement.

If all goes well, then the investor puts in the second round.

If things don’t go well, then most likely they skip the second round of investment.

This reduces the investor's risk in the deal.

It can also optimize the investor's return.

The startup goes through ups and downs.

During the down cycles, investors with dry powder can find more favorable terms.

It’s a good idea to save some of the allocation for an opportunity that provides better terms for the investor.

As an investor, consider how to tranche your investment into the startup to balance risk and reward.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

On this episode of Investor Connect, Hall welcomes Lance Tkach, Co-Founder of Printed Technologies. Located in Dallas, Texas, Printed Technologies is leading the charge to revolutionize the home construction industry through the integration of automation, AI, and large-scale 3D printing. With the U.S. facing a shortage of over 7 million affordable homes and traditional construction lagging behind in innovation, Printed Technologies is tackling this crisis by bringing precision manufacturing techniques to the job site—cutting costs, reducing build times, and improving sustainability.

Printed isn’t just building homes; they’re designing and manufacturing the machines that will enable builders across the country to adopt 3D-printed construction at scale. Their homes are fire-, mold-, termite-, and storm-resistant, and their vertical integration with All Metals Fabricating gives them a significant edge in cost control and production capacity. With a pipeline of $2.5 million in early sales activity and proprietary patents secured, Printed Technologies is not just solving a market problem—it’s transforming an industry. Their mission is simple yet powerful: to make home ownership more accessible while creating a scalable, high-growth business built for the future.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.