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by solatic
1606 days ago
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> But they wanted him to spend FASTER. "you need to adjust spending to be at around a 6 month runway - currently you're at 18. That's too high - spend more!" 1. Spending more is easy, and it doesn't require exorbitant parties or perks. You tell marketing to increase their spend by sponsoring high-end conferences and buying out street-level ad space along major thoroughfares and transit. It gets quite easy to burn seven, even eight figures this way. 2. Of course the investors want the company to have a shorter runway, and it's not even about reinvesting in the next round. It's about control. The lower the financial pressure on the company, the less power the financiers have. The higher the financial pressure on the company, the more the financiers are needed to help ensure continuity. |
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