Bringing (self-sufficient) sexy back
What Stu is saying in the post is pretty much the same thing I’m seeing in the market (except for the $0 pre-money valuations), and its the same thing that I’m hearing from other VCs.
My takeaway from the post is that portfolio companies need to become laser-focused on getting to cashflow breakeven with either a) the cash they’ve got in the bank now or b) with insider money (if the insiders have the money).
My guess is that if we fast forward 6-12 months, there will alot of carnage as startups who couldn’t accomplish a) or b) above will be sold at firesale prices or go out of business.
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