1. Funding events, burn rate curves, vs milestones
Milestones met before funding events. Overlap between funding rounds
Funding curves minimally overlap each other.
Start funding Bridge required to reach next milestone
Risk of running out of money.
Zero funds
Start bridge funding Funding runs out before next milestone
$'s
$1m
m0: demo
m1: MVP
m2: first revenue
m3: ...
$250k m4: ...
$50k
m0 m1 m2 m3
2. Funding events, burn rate curves, vs milestones
Milestones met before funding events. Overlap between funding rounds
Funding curves significantly overlap each other.
No Valley of Death. Start funding Bridge required to reach next milestone
Zero funds
Start bridge funding Funding runs out before next milestone
$'s
$1m
m0: demo
m1: MVP
m2: first revenue
$250k m3: ...
m4: ...
$50k
m0 m1 m2 m3
3. Funding events, burn rate curves, vs milestones
Overlap between funding rounds
Milestones met but a missed milestone and hence funding event.
Bridge loan until next milestone met. Start funding Bridge required to reach next milestone
Zero funds
Start bridge funding Funding runs out before next milestone
$'s
$1m
m0: demo
m1: MVP
$250k m2: first revenue
m3: ...
m4: ...
$50k $50k
m0 m1 m2 m3
4. Funding events, burn rate curves, vs milestones
Overlap between funding rounds
Milestones met but a missed milestone and hence funding event.
Valley of Death. Start funding Bridge required to reach next milestone
Zero funds
Start bridge funding Funding runs out before next milestone
$'s
$1m
m0: demo
m1: MVP
m2: first revenue
$250k m3: ...
m4: ...
$50k
The red bar show the valley of death.
Funding runs out before the milestone is reached.
The next round of funding does not occur.
The company shuts down.
m0 m1 m2 m3