Thursday, September 18th, 2014
In a WSJ piece with Bill Gurley yesterday, Bill says,
“Every incremental day that goes past I have this feeling a little bit more. I think that Silicon Valley as a whole or that the venture-capital community or startup community is taking on an excessive amount of risk right now. Unprecedented since ’99. In some ways less silly than ’99 and in other ways more silly than in ’99.”
Fred Wilson in his piece today, says:
The thing I like so much about Bill’s point of view is that he does not focus on valuations as a measure of risk. He focuses on burn rates instead.
We have multiple portfolio companies burning multiple millions of dollars a month.
I’ve been grumpy for months, possibly for longer than that, about this
At EasyNDA, we are taking a long view and working hard to balance our growth needs against unnecessary burn. Simple things like what bank to use, which services to employ, and on which features to spend our resources.
We see startups all around us burning cash at unrecoverable rates – and expect many of these companies to run into the proverbial wall. Our goal is to stay lean while being optimally responsive to our customers’ needs. Let us know how we’re doing.