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BF

Brad Flora

02/13/25

@ Y Combinator

In the earliest stages, startups should avoid spending money unless absolutely necessary, focusing only on essential expenses like a laptop and a place to live.

Video

YC

The Right (And Wrong) Way To Spend Money At Your Startup

@ Y Combinator

The Right (And Wrong) Way To Spend Money At Your Startup

02/13/25

Related Takeaways

PB

Paul Buchheit

10/25/18

@ Y Combinator

Frugality is essential for startups; you want to launch quickly and at minimal cost to avoid wasting time and resources.

JL

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.

YC

Y Combinator Cast

02/13/25

@ Y Combinator

The primary goal for early-stage startups should be to find product-market fit, and spending should be minimized until that is achieved.

KN

Kirsty Nathoo

08/22/19

@ Y Combinator

Startups often underestimate their expenses, especially in the early days when founders may undervalue their own time and efforts.

HI

Harvard Innovation Labs Cast

02/02/14

@ Harvard Innovation Labs

In the early stages, most companies focus on R&D, leading to zero revenue and high expenses, which is typical for startups.

YC

Y Combinator Cast

02/13/25

@ Y Combinator

When startups raise funds, they often mistakenly assume they need to spend a set amount each month, which can lead to unnecessary expenses instead of focusing on lean operations.

SA

Sam Altman

05/06/15

@ Platzi Team

Startups must remain frugal to avoid dependency on investors and maintain control over their operations.

PB

Paul Buchheit

07/17/19

@ Y Combinator

Frugality is essential for startups; a good indicator of success is the input to output ratio, meaning you should aim to achieve more with less.

MS

Michael Seibel

07/08/22

@ Y Combinator

Founders should be cautious about spending money before achieving product-market fit; it's essential to be disciplined with finances in the early stages.