Startup Survival Matrix

Do you have a startup? Are you reaching for profitability? Do you want to live? Then check out VC Fred Wilson’s survival matrix of burn rate (how much you’re spending) versus runway (how long your cash will last).

Low burn rate and long runway put you in the upper right quadrant — you’ll probably make it to profitability. Short runway but low burn rate put you in the upper left quadrant — you’re small enough for investors to keep funding you.

Long runway but high burn rate put you in the lower right quadrant — you’d better get some revenue soon. High burn rate and short runway put you in the lower left quadrant — you’re screwed.

Pursuing a great idea and changing the world are nice and all, but always remember that it’s all about the Benjamins. So where are you on the matrix?

(Photo by Tracy Olson.)

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