Silicon Valley VCs have a new obsession that perfectly captures the grave danger facing startups : How long is your 'runway'?
One thing VCs agree on is that startups need to quickly rein in growth plans — ideally as soon as yesterday — and start scrutinizing expenses.
Anything nonessential should be cut or suspended indefinitely, headcount should be reduced, and pricey office leases eliminated if possible, all with the goal of extending a startup's "runway."
In Silicon Valley, runway refers to how much cash a startup has on hand to put against its operating expenses.
In the days before the coronavirus pandemic, a startup's runway dictated when it had to start looking for additional funding.
Many VCs that Business Insider has spoken to are advising their startups to have at least 18 months of runway.
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
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