What round? In a small startup you don't have rounds. You are ramen profitable in your first year which is generally not more than $5K-$30K per month (depending on the size) and then you stay alive, you don't get huge or big or massive and generally you don't care. $5-10K per month is good salary for a (co-)founder.
These small startups funded by their customers after 3 months to 1 year, after a year if they are not ramen profitable then it's generally end of the game. In the long term it gets bigger and in which case you are already big which means either someone is going to acquire you or you can fund yourself and keep getting bigger and bigger.
I understand that some startups need load of money and stuff but many don't.
Not everyone can be ramen profitable in their first year. I think his point is that people assume it's easy to get to profitability and end up out of cash when they don't get there right away.
Comments
What round? In a small startup you don't have rounds. You are ramen profitable in your first year which is generally not more than $5K-$30K per month (depending on the size) and then you stay alive, you don't get huge or big or massive and generally you don't care. $5-10K per month is good salary for a (co-)founder.
These small startups funded by their customers after 3 months to 1 year, after a year if they are not ramen profitable then it's generally end of the game. In the long term it gets bigger and in which case you are already big which means either someone is going to acquire you or you can fund yourself and keep getting bigger and bigger.
I understand that some startups need load of money and stuff but many don't.
Not everyone can be ramen profitable in their first year. I think his point is that people assume it's easy to get to profitability and end up out of cash when they don't get there right away.