David Sacks: Startups Need Two Years Runway Because Recessions Last 18 Months
David Sacks · 20VC: Craft Ventures' David Sacks on How To Assess Founder Psychology, How To Accurately Evaluate CAC, Burn and Churn & What Makes The Very Best Startup Boards · Jun 15, 2020 · at 25:58
David Sacks, General Partner at Craft Ventures, offers cash runway advice to founders during the 2020 market downturn.
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“Well, I do think at least two years is a good starting point for thinking about it, because we're in a highly disrupted period right now. We could see tremendous economic disruption for two or three quarters, and just the average recession takes about 18 months to come back from, and this one seems much more severe than average. And so I do think you want to have at least two years.”
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