2 ms·
This is a big problem for many enterprise startups. Most (90%+) are customer funded, not VC funded, and it is common to have a few big design partner customers
by lmeyerov 1y ago
This is a big problem for many enterprise startups. Most (90%+) are customer funded, not VC funded, and it is common to have a few big design partner customers as they figure it out. Imagine several 3yr $1.5M ($500K/yr) contracts, so a team of 10-15 funded on that.
Companies have annual whimsical budget cycles, with new innovation initiatives always big easy targets as not cemented yet. This change makes it very easy to yank one of the 3 year commitments... Which would cause layoffs of a third of the startup.