<i>"82% of startup failure is due to cash flow problems."</i><p>That seems unlikely. That may just mean that 82% of the time, the founders don't pull the plug until they totally run out of money.<p>"Cash flow problem", as a real term rather than an euphemism, has a very specific meaning. It's when the <i>business is profitable</i> but there's a lag between paying out cash to buy needed labor and materials and receiving payment for goods and services. Manufacturers and farmers have that kind of problem.
Hey HN -<p>Henrique here co-founder of Brex (YC W’17). I wanted to introduce the HN community to some new data we gathered at Brex as part of our new blog.<p>We specifically looked to highlight data that is not available to other startups.<p>+ We focused on startup cash burn rates by funding stage (pre-seed, seed, Series A, etc.) because for many startups there is always this question about how much you should be burning.<p>+ Separately, we looked at some of the most popular vendors for startups on Brex in categories like cloud services, CRM, rideshare etc.<p>+ We analyzed the size of the "stealth" startup market. For Brex, it was hard being in stealth for over a year and it's helpful to know just how many of you are out there<p>+ We looked at regional trends in startup cash burn to help startups adjust their benchmarking for their locations<p>Note, we were careful to aggregate the data and only share things we thought could actually help startup founders and early employees<p>Let me know your feedback!<p>Henrique
> <i>Top startups who “graduate” (a success metric) from raising another round of funding from pre-seed to series a burn more than the benchmarked average.</i><p>Startups that spend more money need to raise more money, I don't know what I'm supposed to take away from this fact.
It's definitely an interesting report of some of Brex's aggregate data, but certain statements are inaccurate and misleading. Not sure if this was intentional or not.<p>For example:<p>> CRM: 61% of startups use Copper (formerly) ProsperWorks for their CRM<p>Then below:<p>> CRM: Salesforce 13.0%, Pipedrive 26.1%, Copper 60.9%<p>That adds up to 100%. So startups don't use any CRMs other than those three? Bullshit. Therefore that "61% of startups use Copper" statement is also false.<p>Also weird that they think Intercom is customer support software, cause it's more of a CRM for us and everyone we know.