1) Markets Prove, it's Time to Trim the Burn in 2016
Rory O’Driscoll, Partner, Scale Venture Partners, @rodriscoll
Two major market shifts that have emerged over the past year that taken together suggest that we need to rethink the bullish approach to burn and valuation. First, a significant rise in the cost of burn required to generate a dollar of revenue growth. Second, a decline in the value attributed to that growth by the capital markets.
The facts have changed, not just in capital markets, but in the markets where businesses buy and sell, and a change in strategy is required. Trimming the burn and having a high bar for spending the marginal dollar is the right choice for many in 2016.