52 Bicycles

Dharmesh has another always-insightful post, Why Startups Fail: Run Out Of Cash, Run Out Of Commitment, which is leading him to ruminate on VC vs bootstrapping. He comes to an “interesting idea:”

Perhaps startups should simply be trying to give themselves enough time to figure out what will work. And, the time available is not a function of the amount of cash raised, but the amount of cash being consumed. Profitable startups don’t consume cash — they generate it. Hence, they’ve got more time.

Absolutely. VCs often talk about speed and growth at all costs, but that’s the nature of their investment profile. For the entrepreneur looking to succeed, one needs to survive, and live over time.

Dharmesh says that cash and commitment are the keys to time - get a lot, spend a little. Good advice.

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