Simply ridiculous. Sure it works out for some companies, so does my "secret" stock market strategy if you conveniently ignore the 90% of other cases where it does not work.
Just absurd.. what about 90% of all those startups that fail that have venture capital and have 10+ employees?
What the article shows you is how to compute the burn rate of your competitor. It proves nothing about revenue. Therefore, most VC-funded companies can afford to have a high burn rate with no revenue [until they fail].
The math works if you assume your competitor is established and stable. But if you are entering the market, you'd like to know how you are impacting your competitor, and that method won't help at all.
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Simply ridiculous. Sure it works out for some companies, so does my "secret" stock market strategy if you conveniently ignore the 90% of other cases where it does not work.
Just absurd.. what about 90% of all those startups that fail that have venture capital and have 10+ employees?
Exactly. Link-bait title.
What the article shows you is how to compute the burn rate of your competitor. It proves nothing about revenue. Therefore, most VC-funded companies can afford to have a high burn rate with no revenue [until they fail].
The math works if you assume your competitor is established and stable. But if you are entering the market, you'd like to know how you are impacting your competitor, and that method won't help at all.