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I'm also curious about the general case of people believing that we're in a bubble giving advice to startups. Do they advise that startups keep a really low bu
by vikp 12y ago
I'm also curious about the general case of people believing that we're in a bubble giving advice to startups. Do they advise that startups keep a really low burn rate and wait it out, or go for broke and raise as much as possible now? Do they advocate certain business models that do better in recessions?
- nostrademons 12y agoBoth. When the last bubble hit, the advice given to startups was: 1.) If you're in a position to raise capital, raise money now, because the funding window may not be open for a long time. 2.) Cut burn rates immediately. 3.) Get to cash-flow positive. 4.) Cut non-essential features, and focus on customers that are willing and able to pay. It's usually not practical for a startup to change its entire business model (although LoudCloud did it in the first dot-com bust), but they can trim fat, and stop doing activities that aren't absolutely essential to generating revenue. http://venturebeat.com/2008/10/10/the-sequoia-rip-good-times-presentation-get-your-copy-here/ http://venturebeat.com/2008/10/10/the-sequoia-rip-good-times...