Startups and Macro Risk

I find it difficult to think of another time with as much macro risk as the present at least since the financial crisis and likely much longer than that.

If one of the severe macro risks is realized and the public market really tanks there is another problem that will significantly worsen the contraction.

So how should you approach this as a startup founder/CEO? If you have raised a round at a really extended valuation in the last 6-12 months I would strongly advise making this cash last a lot longer than you had originally planned.

The biggest risk exists for companies that have raised at high valuations but can’t get to cash flow positive on the money in the bank and thus will need to raise again in the future.

Is this something a startup founder/CEO should be paying attention to?

To be clear: there is no certainty about this.