Evolv Has Burned $310 Million, Just $80 Million Cash Remaining
Evolv has raised ~$400 million from investors (mostly from its 2021 SPAC), vaulting it to the most well-known and controversial metal detector company globally.
The company, which recently slashed revenue guidance, is running down its cash reserves, though it is taking action to reduce the burn rate.
In this note, we examine the pros and cons of Evolv's burn rate, how it helped make Evolv what it is today, and what risks it faces going forward from its dwindling cash position.
***** *****'* **** *** *********** *** company **** * *****, ********** ******* startup **** * ***** **** ** very ****-***** *********, *** ******* *** now ****** **** ** *** **********. With ******* *** *** *** ************** and ** ***** *** ********, **** slashing ******* ********, *** **** ** how ***** ********** *** **** ***** forward ******* ********* ******** ** *** company.
******* ******* ******* ** *** ******** currently ******* ******* ******** ****'* ******* quite *** ***** *****. **** ****** Evolv **** *** ******* ** ****** fighting *** *** *** ******* **** cuts *** *********** ******* *** ****** momentum ** ******** *********, ***** ***** decreasing *** *******'* ********* *** ******* company ***** & ********/******** **********.
***** ***** **** ** ** ****** positive ** ***-****, ** ******* ** be **** *** ** ******** *** cash ******** ****** **** *** ***** that ********* ********.
Cash ******* **** ** $** *******
******* ****-********* ** *** *** ** 2023, ***** ****** $** ******* ** cash ** ********* ********** ** ** 2024, *.** **** **** ** *** in *** ***** ******* ** ****, leaving *** ******* **** **** $** million ** ****, **** **********, *** marketable ********** ** *****:
5 ******** ** **** ****
** *** ** **** **** **** of $** *******, ***** ***** ******* its **** ** **** ********, ** roughly *** ****** ** ****.
*******, ***** *** ********* ****** *** operational ******** ** ****** *** ****** for *** ******, **** ******** **** revenue ****** ** ****** **** ******** projections.
Cash ***** ********* *** ******/*****
** *** ******** ****, ******* ******* a *** ******* ******* ******* *** company ** *** ** **** ** is ***** ***. ******* **** ** aggressive **** ****, ***** ***** *** have ****** ** ****** ** ********* as **** ******* ** ** ***, coming ******** **** $* ******* ** **** revenue****** ** ******.
****, *** **** ******* ***** ** build ******* ************* *** **** *** brand ********* ***** ********* ** ********* into *** ******* ****** ****. **** a ******* ******** **** *** ** impractical *** ************* ** **** ******* venture ******.
********, ******* * *** ******* ******* does *** ********* ** ***** *** revenue *** ******** ****** **** ***** has, ****** *****/*********, ***** ****** ******* levels **** ******* **** ******.
Forced **** **** **** ******** ** ***** **** ******
******* *** *** ******** ***** ******** from **** *****, ** ** *** in * ***** ********* ** *** cash ******* *** ** ****** ******* its ********** **** **** *** ****. While ** ** *** ********* *** Evolv ** ******** ********* ** ******* inject ******* **** *** ******* **** the *** *** *** ************* *** its **** ***** ***********, ***** ** left **** *** ****** ** ******* its ***** ***** ** ***** **** funds ** ******* ******** **** ************.
**** * *********** ******* ******** *** Evolv ******* **** ** ********** ******** cash ***** ******* ****-*******, * ******** that ***** *********** **** * *******'* operation *** ****** *********.
Evolv's ******* ********** *********
******* ******** *** *** ***** ** maintain *** **** ******* ** ** grow ******* ************* ******* ********** ***** too ****. ************, *****'* ****** ********** is *********, ** ********** ******* *** *********** ************ **** ********* ********* *** "asking **** *********" ***** ****** *** *** ********, ********** *** ********** ************ ** new ******** ***********. ********* *****/*********** **** these ************** **** **** ******* ************* for *** *******'* ******, *** **** it ** ********* ******* ***** ***** significantly **** *** ******* **** **** as ** *** ** *** **** few *****. ****, *** ******* ***** fundamentally ****** ********* ** *** *** or *** ******** ********* **** *** company ***** ** ********** ** **. This *** ****** ***** ***** ***********, and **** *** **** ** **** harder ** **** ******* ** *** future. *******, ** ******, **** ******* to ** **** ******* ******, ********* themselves, ***** **** *** *** *** the *** ************** **** **** **.
******* **** ********* *** ******* ***** on ********* ***** ** *********** ******* growth, *****'* **** *** ** ********** cash ** ******* ****-*******, ***** *** company ********* ** *** ******** ***** in *** **** *** ********. *** that ****** ***** *** ** *** end **** ******* ** ** ****.
*'* **** ** *** ********** ** going **** *** *** ****. **** had * *** *** ** ***** mess **** ** ******** **, **** and * **** ****** ** ******** 26, ****, *** ***** *** ****** and **** ****** ** ******** ******* their ****.
* **** **** * *** ***** employees **** **** ********* ***** ************ on ******** **** ****. ***** ** the **** ********...****** **** ** ******* but ***** *** ******* ** *******. Intransa *** ******** ** ** ********* and *** ** ****, **** **** Evolv **** **.