Dalton Caldwell and Michael Seibel discuss Paul Graham's essay "Default Alive or Default Dead." They share strategies to cut your company's burn rate and keep your startup alive to see another day.
Paul Graham's essay: http://www.paulgraham.com/aord.html
Trevor Blackwell's startup growth calculator: http://growth.tlb.org
Apply to Y Combinator: https://www.ycombinator.com/apply/
Work at a startup: https://www.ycombinator.com/jobs
Chapters (Powered by https://bit.ly/chapterme-yc) -
00:00 - Introduction
00:23 - Default alive or default dead
02:14 - The calculator
02:59 - Founder's distraction - Fundraising game
07:32 - Fundraising leverage
09:57 - Math are different
11:29 - Kill or cure
15:37 - The fatal pinch
19:22 - Tough decisions when default dead
19:40 - Headcount
20:46 - Ad Spend
22:50 - Raising prices
25:16 - Personal bankruptcy - Taking a big hit to growth rate
26:28 - Twitch's pirate ship
32:22 - Takeaways
32:27 - Survive to thrive
33:15 - To burn or not burn
34:06 - 10x better if operationally intensive business
#ycombinator #startups #burnrate
Paul Graham's essay: http://www.paulgraham.com/aord.html
Trevor Blackwell's startup growth calculator: http://growth.tlb.org
Apply to Y Combinator: https://www.ycombinator.com/apply/
Work at a startup: https://www.ycombinator.com/jobs
Chapters (Powered by https://bit.ly/chapterme-yc) -
00:00 - Introduction
00:23 - Default alive or default dead
02:14 - The calculator
02:59 - Founder's distraction - Fundraising game
07:32 - Fundraising leverage
09:57 - Math are different
11:29 - Kill or cure
15:37 - The fatal pinch
19:22 - Tough decisions when default dead
19:40 - Headcount
20:46 - Ad Spend
22:50 - Raising prices
25:16 - Personal bankruptcy - Taking a big hit to growth rate
26:28 - Twitch's pirate ship
32:22 - Takeaways
32:27 - Survive to thrive
33:15 - To burn or not burn
34:06 - 10x better if operationally intensive business
#ycombinator #startups #burnrate
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Francisco Gimeno - BC Analyst YCombinator's talks are full of excellent insights for start ups (but we can also learn a lot of life's lessons here). When creating something new, do we have clear the value of what is being created? Do we know our own value as Founders or Start up leaders? How can we understand before anything the need to survive, spend only what is necessary, control the burn rate, when to take the tough decisions... How to find the balance between pushing the growth rate and burning all funds by doing this? More in times of inflation and possibly recession. Logically even if the money from investors is there, investors won't be so easy to convince unless our product is clearly good, our homework is done and we are seen, perceived, as able to navigate the bad waters. So many reflections here.