The ‘ideal runway’ is a myth, isn’t it?

When it comes to advice, tech loves standardization. Startups are often told that there are certain metrics to hit, deadlines to meet, timetables to measure themselves against.

Examples abound: Here’s the ideal amount of money to raise at your Series A round; here’s how many employees you should have before hiring this executive; here’s what stage to hire legal counsel; and, most recently, here’s what percentage of staff you should lay off if you’re unable to access more financing.

(The answer is 20% of staff, depending on who you ask).

There’s a response to some of these general statements: Startups are complicated, and one size certainly doesn’t fit all. But still, these startup standards help point companies in the right direction, at some point becoming the status quo.

That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, suggested that he’s seeing startups with 20 years of runway thanks to huge 2021 fundraises, it struck me. Isn’t the general advice that startups should have three years of runway? And if we’re in a more bullish market, 18 months?

My delayed reaction to this August tweet aside, let’s talk about runway. As you can tell by the headline of this piece, I think that the ideal length of runway is a myth — alongside other startup myths like more money equals more growth. By the end of this piece, you may agree.

Credit belongs to : www.techcrunch.com

You May Also Like

Nigerian proptech Spleet gets $2.6M led by MaC VC to scale its property management products

For the average individual living in Lagos — Nigeria’s most populous city, with over 20 million people — apartment hunting is an extreme sport. Not only is rent expensive — low- to middle-income housing can cost between $1,000 and $5,000 yearly — but renters must also pay a year in advance, sometimes even two before […]

Nigerian proptech Spleet gets $2.6M led by MaC VC to scale its property management products by Tage Kene-Okafor originally published on TechCrunch

App Store experienced sharp revenue drop in September, Morgan Stanley says

Apple’s App Store suffered a 5% year-on-year dip in net revenue in September according to a note from Morgan Stanley analyst Erik Woodring. This is the biggest drop in App Store revenue since the financial services company started tracking its data. Woodring said gaming was the biggest reason for the decline as the sector plunged […]

App Store experienced sharp revenue drop in September, Morgan Stanley says by Ivan Mehta originally published on TechCrunch

error: Content is protected !!