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Kirsty Nathoo

08/22/19

@ Y Combinator

If you have six months of runway left, you should start thinking about raising money or achieving profitability, as waiting too long can reduce your leverage with investors.

Video

Kirsty Nathoo - Managing Startup Finances

@ Y Combinator

Kirsty Nathoo - Managing Startup Finances

08/22/19

Related Takeaways

Kirsty Nathoo

08/22/19

@ Y Combinator

As your company grows, raising money becomes more challenging, especially if you wait too long and your runway gets too low.

Y Combinator Cast

01/27/22

@ Y Combinator

When a startup's runway decreases to about 12 months, founders often start making better decisions as they face pressure to perform.

Shana Fisher

06/20/14

@ Y Combinator

When raising money, it's crucial to focus on making whatever you raise last, rather than just aiming for a specific runway duration.

Jessica Livingston

05/04/17

@ Y Combinator

Live cheaply at the beginning to extend your runway; startups often take time to figure out what they should be doing, and overspending can lead to running out of time for necessary evolution.

Geoff Ralston

10/11/18

@ Y Combinator

When raising money, assume it might be the last time you'll be able to do so; raise enough to reach profitability without needing more funds soon.

Michael Seibel

03/07/18

@ Y Combinator

Investing six to twelve months after initial contact can lead to better valuations and more information about the startup.

Y Combinator Cast

05/07/22

@ Y Combinator

It's crucial for founders to recognize when they are in a precarious financial situation and to act quickly to assess their runway and make necessary adjustments.

Kirsty Nathoo

08/22/19

@ Y Combinator

Your runway is how long you can operate before running out of money, calculated by dividing your bank balance by your average burn rate.

Michael Seibel

05/07/22

@ Y Combinator

In the startup world, you're judged on your performance over the last six to eighteen months, so if you can cut your revenue in half to become sustainable, it can lead to better long-term outcomes.