Re:FDIC Takes over Silicon Valley Bank
by berkle4455 on Friday March 10, 2023 @12:34PM
(#35097856)
For sure. The post I was replying to was for a seed stage company though. They’ve for $250k secured by Monday. My point was small firms can meet payroll and bills just fine with only $250k
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Yep traditional advice is don't burn > 100k / mo when early stage, and most lower. So 2mo+ payroll fine for a normal seed, early A. Later stage are normally more sensitive. It's also a real issue with profitable companies whose outflows are at that level and are considering bigger purchases -- I'd be bailing if we were there just bc that.
Except the last couple years have been bonkers with little revenue / spending alignment during fundraising. Early stage burns are above that level, which makes the situation worse for current crop of co's. Ouch and good luck :(