News
Optimal Startup Burn Rate
August 22, 2008
Hive7’s own CEO & Physicist Max Skibinsky used the Kelly criterion to formulate the optimal startup burn rate.
Max’s math:
p = probability of success
b = payout odds per Kelly
F = funding
V = valuation
M = valuation multiplier on “win”
R = burn rate per time frame
T = time frame units to develop and prove