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> I wonder if this will benefit startups that are more bootstrap style. Does less funding necessary for anticipated future growth imply less damage during a rec
by gnicholas 4y ago
> I wonder if this will benefit startups that are more bootstrap style. Does less funding necessary for anticipated future growth imply less damage during a recession?
Probably the folks in the best position are those that just raised a ton of money but haven't committed to spending it yet. Bootstrapped startups may be subject to the same economic headwinds, but have less of a cash buffer than VC-funded startups. The funded startups that have a high burn rate may need to cut costs dramatically to make it through, but the ones that just raised may have the longest runway and biggest buffer of them all.
They may still have a challenge avoiding a downround in their next raise, if this one was done in a frothy environment.