When it comes to recommendation, tech loves standardization. Startups are sometimes instructed that there are particular metrics to hit, deadlines to satisfy, timetables to measure themselves towards.
Examples abound: Right here’s the best sum of money to lift at your Collection A spherical; right here’s what number of workers it’s best to have earlier than hiring this government; right here’s what stage to rent authorized counsel; and, most just lately, right here’s what proportion of employees it’s best to lay off for those who’re unable to entry extra financing.
(The reply is 20% of employees, relying on who you ask).
There’s a response to a few of these common statements: Startups are sophisticated, and one measurement definitely doesn’t match all. However nonetheless, these startup requirements assist level firms in the precise course, sooner or later changing into the established order.
That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, prompt that he’s seeing startups with 20 years of runway thanks to very large 2021 fundraises, it struck me. Isn’t the final recommendation that startups ought to have three years of runway? And if we’re in a extra bullish market, 18 months?
My delayed response to this August tweet apart, let’s speak about runway. As you may inform by the headline of this piece, I feel that the best size of runway is a delusion — alongside different startup myths like extra money equals extra progress. By the tip of this piece, it’s possible you’ll agree.