
How to work out the optimum burn rate for a startup - mmilo
http://blog.bugherd.com/getting-to-optimum-burn-a-deeper-look/
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brotchie
Interesting. If you replaced R(t) with a stochastic process, perhaps with a
time-dependent drift, you could incorporate a degree of uncertainty into your
revenue predictions. You would then be able to solve for the optimal burn rate
B(t) using stochastic optimal control. Maybe that's getting a bit too extreme
though.

I wonder if anybody has applied stochastic modelling to the early stages of a
start-up; treating the choice of VC funding, exit timing, etc as real-options.

