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 boost at your Sequence A spherical; right here’s what number of staff it is best to have earlier than hiring this govt; right here’s what stage to rent authorized counsel; and, most just lately, right here’s what share of employees it is best to lay off in case you’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 difficult, and one measurement definitely doesn’t match all. However nonetheless, these startup requirements assist level firms in the precise course, in some unspecified time in the future turning into the established order.
That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, urged that he’s seeing startups with 20 years of runway thanks to 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 discuss runway. As you may inform by the headline of this piece, I believe that the best size of runway is a fable — alongside different startup myths like more cash equals extra development. By the tip of this piece, you could agree.