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by lumost 1780 days ago
If a company is going to go bust in 6-12 months and the metrics wouldn't warant further investment. Then the senior leadership may opt to increase the burn rate to run out of money in 3-6 months with the hope that the extra headcount will solve the deathly problems coming up at the end of the year.

At the very least it can help drum up interest from investors based on "look at the new X we shipped, or look at how strong our team is"