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YC

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.

Video

YC

Simple Products That Became Big Companies – Dalton Caldwell and Michael Seibel

@ Y Combinator

Simple Products That Became Big Companies – Dalton Caldwell and Michael Seibel

01/27/22

Related Takeaways

YC

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.

KN

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.

MS

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.

RS

Reshma Shetty

07/11/18

@ Y Combinator

Your startup's success hinges on applying pressure for efficiency, which extends your runway and increases your options as you grow.

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

Investors can help guide startups by encouraging transparency about financial metrics like runway and burn rate, which are essential for maintaining focus and discipline.

MS

Michael Seibel

05/07/22

@ Y Combinator

Founders should be proactive in making tough decisions to steer their startups towards profitability, rather than relying on external pressures or advice.

YC

Y Combinator Cast

05/07/22

@ Y Combinator

It's important for founders to understand that the perception of needing to grow rapidly can lead to poor decision-making, such as overspending or neglecting financial health.

MS

Michael Seibel

02/24/23

@ Y Combinator

Sharing bad news, like having only two months of runway, can actually motivate great startup employees to engage and find solutions together.