Startups cannot survive without a runway…
Unless they’ve reached escape velocity.
Haven’t reached takeoff? Wondering how you keep your startup on track? Chris and Yaniv are here to help you through the tough times
Together they discuss:
Runway refers to how long a startup can operate with its current resources before shutting down. It depends on cash, burn rate, and other factors like loss of interest or personal commitments.
Becoming cash flow positive is not the same as becoming sustainably viable. Startups need "escape velocity" to become viable in the long run.
A founder's personal runway, like their financial situation and family commitments, impacts the startup's runway. Founders with more cushion have longer personal runways, benefitting their startups.
Founders should continually provide value and work to extend runway. They should start fundraising well before needing money.
Putting a startup into "hibernation" by eliminating costs can extend runway. But momentum is hard to regain, especially for simple SaaS startups. Hibernation often only works for startups with tech or intellectual property.
When considering hibernation, founders should make rational decisions, not emotional ones to save the startup. They should consider realistic success chances given the situation.
Stay on track while you reach escape velocity - tune into this episode to learn how!
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Work 1:1 with Chris: http://chrissaad.com/advisory/
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Follow Yaniv on Linkedin: https://www.linkedin.com/in/ybernstein/
Credits
Lovingly handcrafted for the global startup community by:
Editor: Justin McArthur
Associate Producer: Aidan Cousins
Intro Voice:Jeremiah Owyang
