Hypothetically speaking, a startup gets some rounds of investment from VCs, operates for a few years, and run out of runway. What do these final months look like? Do the investors try to get their money back?
Hypothetically speaking, a startup gets some rounds of investment from VCs, operates for a few years, and run out of runway. What do these final months look like? Do the investors try to get their money back?
Talking about tech startups:
Depends on the startup. If they have a good team, they might get acqui-hired. If they have any patents or other IP, they might get acquired (for not much). Investors get the bulk of these types of exits, and the founders and employees get screwed.
If the startup doesn’t even have that, they may just wrap up the operation and go out of business.
Interesting, the place I work at still has runway (apparently), but we’re not close to being profitable, have no clearly defined market fit, and we’re rapidly bleeding long term hires that are getting fed up and quitting. I’m sensing from the unusual silence from the founder that discussions of some sort are happening higher up that we’re not privy to. I’m trying to figure out what the signals match up to.
You should freshen up that resume and LinkedIn profile