Fundamental insights on “Burn Rate”

This book left it very clear to me that high business profits do not come with out high monetary investment and personal risks. The Internet world is an industry that is not yet clearly defined. Maybe because we are trying to define it with words that have a historical meaning. What word should we use to define something new? Maybe we should use a new word. In “Burn Rate” an interesting question is raised; is the Internet a new media or another form of communication like the telephone (with this the push theory does not stand). This question was the breaking point for Wolff’s decision of leaving his start-up, or at least his excuse.

The book describes very well the negotiations that go on between the I-banks, VC’s, and other investors. It was interesting to see partnerships go sour very fast when stress is part of the daily business.

The Internet definitely moves as fast as light. I did not know that you practically have to move, negotiate, and close deals at that speed. Exhausting!

It almost felt that to manage an Internet company you had to be able to orchestrate many instruments at the same time. The book mainly focused on the financing aspect of the company, but it was very clear that the amount of variables in play where many.

My biggest take a ways from this book are three things. First, that there is no way an internet business will make it big if there is no luck and love in what you do. How can anybody, day in and day out, try to sell an idea if you do not really believe in it? Second, every body in business is out to make a profit, to expect something different is CRAZY. One must therefore expect that every body will try to %#$@* you. If they don’t, great that means you might have made a friend. Third and last, what goes around certainly comes around, and in the Internet that boomerang effect is so much faster.

I enjoyed the book it was entertaining and easy to read. I recommend this book to entrepreneurs and definitely not to future Lehman Brothers Investment Bankers.