Turner: Startups Should Always Raise Minimum 18 Months Runway
Guy Turner · 20 VC 056: The Life Cycle of Startups with Guy Turner, Partner @ Hyde Park Venture Partners · Jul 22, 2015 · at 7:16
Guy Turner, Partner at Hyde Park Venture Partners, outlines capital runway requirements and fundraising timeline strategies for early-stage startups.
0:00 / 0:11exact quote · 11.1s
720p mp4 · rendered on demand · StarZero watermark
“So, eighteen-month runway is what we consider being the minimum that a startup should raise, regardless of stage whether it's a seed stage, or whether it's a series A or a series B,”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Guy Turner
Guy Turner: B2B product-market fit requires four sequential milestone steps
“So in the earliest stages of a startup, that's, can you get someone to pay for your product? And then it's, can you get more than one someone? So, Five, six, seven, 10, 15, a hundred customers, depending on your price point, to really prove, hey, you didn't ju…”
Turner: B2B First Sales Do Not Guarantee Scalability
“I think in business-to-business software, that, that would be kind of a tough rule because we do see a lot of situations where a specific piece of software is developed for one customer with a pretty specific need, and that getting beyond that one customer to …”
Turner: Hyde Park avoids founding teams lacking a technical co-founder
“The one wrong way that we're pretty pretty conscious of is we typically will not invest in a founding team that does not have a strong technical co-founder on it.”
Guy Turner: Successful startups limit strategy testing to weeks or months
“The teams that we see being successful will test strategies, put a bound put a boundary on how long they're willing to spend on it without it being successful and then move on to the next thing. And that's measured in weeks and months in a successful startup, …”
Guy Turner: Investors will add 33% more capital to double success odds
“Investors want you to be successful and are typically willing to put a third more money to work to double the chances of the company being successful.”
Turner: Startup hype exceeding performance harms future fundraising
“We see that particularly in financings when companies that at one point were very high on the hype curve, and as I like to say, where hype is really ahead of performance where they need to suddenly raise more money, and they actually go in front of investors, …”