If a startup is struggling to close a funding round, how far from failure are they? This is a fintech company. Not sure how much info to include. Ask any questions below. #startup #tech
Are contractors getting paid? And if so, is it NET90 vs. as soon as invoiced? That might be a 🪧.
It's extremely context dependent. You would just look at the runway (negative cash flow vs cash on hand), and estimate the odds that the bank account hits ~0 before funding comes in or the company exits.
Totally depends. What’s the northstar metric and how are they doing on that? How much valuation are the founders looking for? How much runway is left? But … significantly more startup’s have been funded this year, this is because investors are looking for growth and startup’s usually have growth. It could be a 🚩 if a startup struggles to get funding despite the crowded market.
A two year old startup trying and failing to fundraise probably has less than a year left unless they are the rare case of having significant revenue.
What would you say if there was very little to no revenue? Other monetization paths haven’t panned out, trying new ways now
Startups typically raise 6 months to 2 years of runway. I'd just ask management what the current runway is. No revenue and no funding means death inevitably.
not a bad sign. it’s normal
In this environment? Bad sign if they can’t raise.
In this environment, it is a very bad sign.
money-in-bank/burn-rate - patience-of-current-investors
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How long has the startup been running ?
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