Fatal Pinches, Seed Follow-On Rates, and Estimated Marginal Dilution
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Yesterday, Paul Graham posted a great article about “fatal pinches” – situations where a startup still has a decent amount of runway in the bank, but its costs are high and its revenue growth is too slow to merit another round of funding. PG suggested that startups caught in fatal pinches have 3 main options: 1) give up, 2) cut costs – which often involves laying people off, or 3) do whatever it takes to increase revenue (e.g. consulting).
Fatal Pinches, Seed Follow-On Rates, and Estimated Marginal Dilution
Fatal Pinches, Seed Follow-On Rates, and…
Fatal Pinches, Seed Follow-On Rates, and Estimated Marginal Dilution
Yesterday, Paul Graham posted a great article about “fatal pinches” – situations where a startup still has a decent amount of runway in the bank, but its costs are high and its revenue growth is too slow to merit another round of funding. PG suggested that startups caught in fatal pinches have 3 main options: 1) give up, 2) cut costs – which often involves laying people off, or 3) do whatever it takes to increase revenue (e.g. consulting).