Burn Rate
| Industry | Internet, Dotcom startup |
|---|---|
| Founder | Michael Wolff |
Burn Rate: How I Survived the Gold Rush Years on the Internet is a non-fiction work authored by Michael Wolff in 1998, which recounts his journey with his dotcom venture, Wolff New Media.
Content
The term "burn rate" denotes the speed at which a startup expends its available capital. The book narrates Wolff's attempts to obtain investment from organizations such as AOL, The Washington Post, and Magellan. It also explores the increasing conflicts with investors including Robert Machinist, Alan Patricof, and Jon Rubin. Eventually, Wolff departs from the company, collects unpaid wages, and returns to journalism by composing this insider account.
Throughout the text, Wolff shares his experiences with Internet innovators like Louis Rossetto and offers commentary on the transformation of media in the digital era. He underscores the transition from conventional edited content toward interactive elements such as chat rooms, stressing the observation that "people don't read on the Internet."
Publication history
An excerpt from Burn Rate appeared in the June 1998 edition of Wired. The full book was published later that year in autumn and has since been issued in four editions across hardcover and paperback formats.
Reactions
By October 1998, Wolff disclosed that Isabel Maxwell and David Hayden of Magellan expressed dissatisfaction with their depictions in the book, accompanied by legal warnings from Jon Rubin and Alan Patricof. Conversely, Robert Machinist, characterized as a "larger than life anti-hero," embraced the attention for its potential to attract further business opportunities.
The Village Voice highlighted a significant omission: although Wolff deferred his own paycheck to support the company’s survival, he encouraged employees to do likewise. When he finally received his accumulated salary, it exhausted the remaining funds, which prevented staff members from being compensated for their owed wages.
Reviews
- Business Week
- CNN
- Complete Review
- New York Times (Hafnert)
- New York Times (Lehmann-Haupt)
- New York Times (Stead)
- Salon.com
- San Francisco Chronicle
- Slate
- strategy+business
- Suck
- Writers Write (July 1998)