The world is ending and what to do about your startup
If you are a founder of one of the ~4,000 startups that has raised a seed round, or one of the ~2,000 companies that has raised a Series A in the last two years, these days things feel very strange.
Your revenue and customers might be growing or not, your product might be improving or not, and your team might be finding value in their work or not, but what’s keeping you up at night is something else. What is chipping away at your soul is the nagging feeling you are having about the the looming winter that is coming in venture startup funding.
Don’t worry, you are not Uber, or Dropbox, or Zenefits, and most likely you never will be. So what, if anything, do you need do?
First, you need to get back to basics. If your entire plan of building a business was based on the idea that you need to do whatever it takes to raise the next round, you might need to reevaluate. Your business will be successful if your company can make more money than it spends. It’s that simple. It doesn’t matter what valuation you had in your last round, or how much your lead investor is involved in your startup and seems excited about the “big picture”. You need to figure out how you are going to make more money than you spend.
Now if you are onboard with that idea, I have done some work for you to save you some time. I have read all the good articles from very smart people and summarized what you need to do:
One or both of the following:
- Raise as much as you can right now from people who are already investors.
- Go lean and figure out how to bring the costs down and revenues up.
If you don’t believe me, feel free to read: