Paul Graham, reminding startup founders the importance of understanding revenue and growth in relation to capital needed for success.
When I talk to a startup that’s been operating for more than 8 or 9 months, the first thing I want to know is almost always the same. Assuming their expenses remain constant and their revenue growth is what it’s been over the last several months, do they make it to profitability on the money they have left? Or to put it more dramatically, by default do they live or die?
Paul links to a simple calculator Trevor Blackwell has made to help you figure it out as well.