Solana co-founder: The key for startups is to avoid running out of funds

ChainCatcher news, Solana co-founder Anatoly Yakovenko shared key points for startup survival on the X platform.

He emphasized that the only reason startups fail is running out of funds, and avoiding fund depletion can ensure the company's survival. Yakovenko warned entrepreneurs to be highly cautious of long-term contracts, such as long-term office leases or data center agreements, as these are equivalent to debt. He suggested keeping contract expenditures below 20% of total expenses; otherwise, it can be very dangerous.

Yakovenko also pointed out that large teams can quickly deplete funds. He recommended that each employee should justify their value through profit or revenue. If the company has an 18-month cash reserve, it needs to achieve profitability or refinance within 6-12 months; if it is not profitable after 6 months, it may need to cut expenses by 33%; after 9 months, a 50% cut may be necessary. Considering that contract expenditures cannot be reduced, this could lead to layoffs of 50% or even 70%.