Shedden: Chroma returned capital after failing three internal business viability tests
Miles Shedden · Myles Shedden, Founder of Chroma | How to NOT Find Product Market Fit · PMF Show · Sep 12, 2023 · at 25:31
Miles Shedden, founder of Chroma, outlines the evaluation framework that led the founders to shut down the company and return investor capital.
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“The three questions we asked were, do we think this business model is rock solid? Do we think that we could actually, you know, we go through a downturn for 18, 24 months, 36, whatever it ends up being, and is Chroma a place that A players still want to work? And then finally, do we believe that the equity value of the business will increase substantially over the next couple of years, such that we can raise another round at the end of this and be, become a successful company? And the answer was ultimately no, no, and probably not. And so that's why we decided to return capital to investors.”
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