Question
As technology venture CEO, you are presenting your software company's seed round to a potential VC associate, who is a partner at a VC fund.
As technology venture CEO, you are presenting your software company's seed round to a potential VC associate, who is a partner at a VC fund. According to your team, you have 508 users this year (year 1) with each paying $149.99/mo. for your software-as-a-service product.
Your CFO says your annual expenses are around $275k annually and projected to rise 14.5% each year (year on year increase). Good news is, your users will experience year-on-year growth of 25% in year 2, and 30% on year 3 and by 35% in the fourth year. More importantly, in year 3 and 4, you are improving the product and can charge customers $249.99 a month.
Assuming 4-year projection time-horizon, what is:
- Your gross burn (in $) for year 3 [show as positive value, if -225,000, write as 225000]
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