5 ms·

Budgeting for 18 months of runway doesn't mean "waste money on frivolous things as fast as possible"

• mach1ne 4y ago
  Not on all cases, but I personally know one startup where the VC told the investors to hire as many people as possible, regardless of whether they were actually needed. This anecdote seems to ring true with what I hear elsewhere.
  • slap_shot 4y ago
    I think you might have conflated a few things: No VC is telling companies to just to wastefully hire people they don't need. That wastes money and creates friction and bigger problems inside of a company. They do tell you to hire aggressively, and you often present them with a model that shows _how_ you will use the money you raise, and sometimes you hire too many people on accident. But no VC is pounding their fists on the table telling founders to explicitly go hire people that aren't needed. That's directly against the interest of both the founder and the investor.