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High burn rates serve VC interests. Not surprisingly this article was written by a VC. High burn rates make companies desperate for more cash on worse terms, di
by crystaln 12y ago
High burn rates serve VC interests. Not surprisingly this article was written by a VC. High burn rates make companies desperate for more cash on worse terms, diluting founders equity and control. High burn rates also indicate the company is shooting for the moon. VCs want unicorns, not just successful companies. They don't want your careful 100M exit of which you own 30%. They want a billion plus exit of which you own 5%. The former is far easier to achieve and most companies aiming for the latter burn out.
So basically, this article is entirely self serving. Surprise surprise. Listen at your own peril.