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Michael Seibel

05/07/22

@ Y Combinator

When a startup is losing money, it's essentially a wealth transfer from investors to consumers, and only a few companies will successfully navigate this situation by being very smart about their finances.

Video

Save Your Startup During an Economic Downturn

@ Y Combinator

Save Your Startup During an Economic Downturn

05/07/22

Related Takeaways

Y Combinator Cast

02/13/25

@ Y Combinator

Many startups fail because they don't communicate effectively with their investors, leading to a lack of awareness about their financial status and spending mistakes.

Kirsty Nathoo

08/22/19

@ Y Combinator

Most startups fail because they run out of money, but you can avoid this by understanding your cash balance, expenses, and having a clear plan for profitability.

Naval Ravikant

10/29/15

@ Tim Ferriss

In the startup world, you're betting that 90% of companies will go to zero or just return your money, while the remaining 10% will yield huge multiples and markups.

Kirsty Nathoo

08/22/19

@ Y Combinator

Many startups fail to realize they are running out of cash until it's too late to turn things around.

Sam Altman

05/02/17

@ Y Combinator

When a startup is failing, it's important to communicate openly with investors and ensure that employees are not left in the dark.

Y Combinator Cast

01/27/22

@ Y Combinator

Taking money from investors comes with accountability; if a startup fails to deliver, it can lead to lasting damage to the founder's reputation.

Sam Altman

05/06/15

@ Platzi Team

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

Jensen Huang

06/24/11

@ Stanford Online

In the early days of a startup, survival is crucial; as CEO, you're either making money, saving money, or raising money.

Y Combinator Cast

03/07/18

@ Y Combinator

If a startup fails and goes through dissolution, SAFE investors are next in line to be repaid after creditors, but often receive only a fraction of their investment back, if anything.