3 ms·

They had customers (hence the problem) and so they had revenue. So they should have had plenty runway.

• dvfjsdhgfv 8y ago
  It's not unlikely the costs of work performed for these customers wasn't enough to keep the company running. Honestly, it looks more like "let's cut down on costs, immediately", rather than a mistake on a part of an exec.
• the_watcher 8y ago
  It's very easy to have revenue but no runway. If your monthly burn is $1M and monthly revenue is $800K and you have no cash in the bank, you have no runway.
  • sgt101 8y ago
    They had a $4m raise a year ago and 22 employees. They must have had a very high compensation scheme.
    • x0x0 8y ago
      not really. $4m over 1.25 years (and don't forget comp costs the company 1.3) == $2.5m comp to employees per year. That is not much for 22 employees. math: (4/1.25)/1.3