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 towards.
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’s best to have earlier than hiring this government; right here’s what stage to rent authorized counsel; and, most not too long ago, right here’s what proportion of workers it’s best to lay off should you’re unable to entry extra financing.
(The reply is 20% of workers, 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 suitable course, in some unspecified time in the future turning into the established order.
That’s why when entrepreneur Paul Graham, the co-founder of Y Combinator, advised 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 speak about runway. As you possibly can inform by the headline of this piece, I feel that the best size of runway is a delusion — alongside different startup myths like extra money equals extra progress. By the top of this piece, you could agree.