This article is written for VC-funded startups of the type that Paul Graham talks about. Why is that an issue?<p>&quot;he is saying that no matter what, if you have raised money, you should shut your company down if you are within 2 months of insolvency. Which I think goes back to my original point that you only shut down when you lose faith.&quot;<p>The article very clearly explains that if you are within 2 months of insolvency, you need to shut down in at least the sense of firing all your employees, because otherwise you run the risk of not being able to pay salaries or taxes, which is illegal. Having faith has nothing to do with this - faith doesn&#x27;t pay salaries.