The great VC pullback of 2022
Having been at a series C+ company that ran out of money.  There are a few things to keep in mind if you are working at a non-profitable startup.<p>1) Investors need to invest in <i>something</i>, not continuing operations.  Companies who are about to run out of money will often claim to pivot in a different direction, launch new products, or go on hiring binges.  A good sign that something is amiss is when all of this isn't backed by any customer interest, the internal story is meh, and leadership is steadfast that this is the direction.<p>2) At some point all of the senior leadership needs to focus on getting VC money, or selling the business.  You may have high pressure dates one month, and then an erie calm where no one seems to care about anything.  Because frankly, leadership has stopped caring about the business and it no longer matters to the company.<p>3) A debt round shows up, these are usually life support rounds for companies missing their metrics.  The company doesn't want to lose valuation, but they don't have any deals lined up yet.  The debt is to keep the show going while they figure things out.  Caveat: Debt rounds because the company aims to be profitable, aren't that bad.<p>4) Implosion, if the company has a high burn and no offers - then something has to give.  The thing to give is the $NewIdea, not the core product - however if the core product is shrinking/mature the core product team may see layoffs as well.<p>At this point, if I consider a startup - I look to join just after a funding round has closed.  This means that the money to build your product is there, the work will be new, and the company doesn't have to go through hijinks.  The worst time to join a company is when they say they are working on a funding round.