When it comes to recommendation, tech loves standardization. Startups are sometimes advised that there are particular metrics to hit, deadlines to fulfill, timetables to measure themselves in opposition to.
Examples abound: Right here’s the best amount of cash to boost at your Sequence A spherical; right here’s what number of workers 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 should 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 normal statements: Startups are difficult, and one dimension actually doesn’t match all. However nonetheless, these startup requirements assist level corporations in the proper course, sooner or later changing into the established order.
That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, steered that he’s seeing startups with 20 years of runway thanks to large 2021 fundraises, it struck me. Isn’t the overall 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’ll be able to inform by the headline of this piece, I believe that the best size of runway is a fantasy — alongside different startup myths like more cash equals extra progress. By the top of this piece, you could agree.