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by andygcook
2418 days ago
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For us the main indication of impending doom is when we don't hear from you. When we haven't heard from, or about, a startup for a couple months, that's a bad sign. If we send them an email asking what's up, and they don't reply, that's a really bad sign. So far that is a 100% accurate predictor of death. Can someone at YC comment on if this is still a good proxy for startup failure? From a personal perspective, we've sent out an investor update every single month [1] for our startup over the last four years. We also almost ran out of money at the end of 2017. The updates around that time were the hardest ones send out, but I can confirm they did help keep the company alive by forcing me to create and articulate a survival plan to our investors to get to profitability, which we pulled off [2] and are still going strong today. -- [1] The template we use for investor updates if you're curious: https://app.tettra.co/teams/tettra/pages/investor-update-tem...
[2] The story about how we almost ran out of money but survived: https://tettra.co/blog/navigating-the-depths-of-nearly-faili... |
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The people who don't want to have those hard discussions are the ones that have their startup die. People who don't reply to emails are often people who are having negative feelings they don't want to deal with.
Maybe they don't have answers and are afraid to give a status report that includes an admission that they simply don't know. Maybe they don't want to be the harbinger of bad news and are waiting until things get better.
Neither of those is a constructive response. Neither of those fixes the problem.
Avoidance tactics are usually about emotional reactions. They usually aren't actually tactical choices for effectively addressing a problem.
There are exceptions. There are times when silence is golden or when it is the least worst option. I doubt that ever applies to dealing with an ongoing relationship with your investors.
(I'm not someone with startup experience. I just know something about people.)