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Top 10 Start-Up Mistakes
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Last Week’s Buzz
Sequoia’s mandatory meeting of portfolio company’s CEO’s,Bill Gurley of Benchmark’s email, Ron Conway’s message onTechCrunch
•bleak outlook, long recovery (years)•extend runway; cut spending; closely examine sales and marketingexpenses•reduce product risk, focus on revenue generating products•get cash flow positive now•don’t expect funding unless you are cash flow positive•valuations and funding amounts will be lower •remain calm
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1. THINGS TAKE LONGER THAN YOU EXPECT;
PRESERVE RUNWAY
This should drive your fundraising goal:
•Will the capital allow you to reach a major milestone?
—
cash flow positive
•Will the market allow you to reach the milestone?•If it is uncertain, plan for at least 18 months of runway.•Use capital frugally.
Take the money – it always takes longer than you planned and, if you have an option, take more.
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