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"Companies don't spend through all their money because a VC makes them." Not sure about your experience, but from what I've seen that's exactly the case. I was
by anon808 15y ago
"Companies don't spend through all their money because a VC makes them."
Not sure about your experience, but from what I've seen that's exactly the case. I was director of finance of a startup that raised (and burned) $30M+ from several 'tier A' VCs. I was in the board meetings where the VC partners and board members wanted that money spent. You don't hit home runs without swinging.
- tptacek 15y agoIn the late '90s I was a founder at a company that raised VC; the VC-led board changed us from a multicast software product company to competing with Akamai (heh). Go big or ("and", really) go home.
- AznHisoka 15y agoIt does make sense. Why would they give you lots of money if you're going to keep it in the bank?
- tptacek 15y agoThe point isn't that "pressure to spend the money" (or, more broadly, that "the runway is 18 months whether you get $3MM or $15MM) is unintuitive. It's intuitively obvious, you're right. The point DHH is making is that people don't really think through the implications of that logic.
- DanielRibeiro 15y agoNot sure about your experience Well it is not like it is a secret, right? http://news.ycombinator.com/user?id=emmett http://news.ycombinator.com/user?id=emmett http://www.crunchbase.com/company/justintv http://www.crunchbase.com/company/justintv http://www.crunchbase.com/person/emmett-shear http://www.crunchbase.com/person/emmett-shear