The ‘ideally suited runway’ is a delusion, isn’t it?

When it comes to recommendation, tech loves standardization. Startups are sometimes advised that there are particular metrics to hit, deadlines to satisfy, timetables to measure themselves towards.

Examples abound: Right here’s the best sum of money to lift at your Collection A spherical; right here’s what number of workers it’s best to have earlier than hiring this govt; right here’s what stage to rent authorized counsel; and, most lately, right here’s what share of employees it’s best to lay off in case you’re unable to entry extra financing.

(The reply is 20% of employees, relying on who you ask).

There’s a response to a few of these common statements: Startups are sophisticated, and one dimension actually doesn’t match all. However nonetheless, these startup requirements assist level corporations in the correct route, 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, steered that he’s seeing startups with 20 years of runway thanks to very 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 discuss runway. As you possibly can inform by the headline of this piece, I feel that the best size of runway is a delusion — alongside other startup myths like more money equals more growth. By the tip of this piece, you could agree.

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