When it comes to recommendation, tech loves standardization. Startups are sometimes informed that there are particular metrics to hit, deadlines to satisfy, timetables to measure themselves in opposition to.
Examples abound: Right here’s the best amount of cash to lift at your Sequence A spherical; right here’s what number of staff you need to have earlier than hiring this govt; right here’s what stage to rent authorized counsel; and, most just lately, right here’s what proportion of employees you need to lay off in the event 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 sophisticated, and one measurement actually doesn’t match all. However nonetheless, these startup requirements assist level firms in the correct path, sooner or later changing into the established order.
That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, instructed 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 speak about runway. As you may inform by the headline of this piece, I believe that the best size of runway is a fantasy — alongside different startup myths like extra money equals extra progress. By the top of this piece, you might agree.