Startup Restructuring 101
Anecdotal data but..<p>Was at a party with an acquaintance a week ago who said they need more money by February or they’re dead. Series A but still not profitable.<p>From the outside looking in they have nearly 100 employees, PMF, great marketing and appear to be crushing it. So it was sobering to hear the reality.<p>I asked what the plan B is if money is not forthcoming and he looked at me like I was asking a stupid question. I think the guy running it has been in this situation previously and do or die mentality is there. However as many people are saying this downturn feels different, deeper and more prolonged.<p>I will be watching their progress with great interest from February and use their ability to weather this storm as a yardstick albeit acknowledging it’s just one data point.<p>Bootstrapped companies that are profitable and sustainable will be rejoicing at the moment for sure.