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The Resetting of the Startup Industry

Both Sides of the Table

The smartest companies in the market that I know are working aggressively to lower burn rates through pragmatic cost cutting knowing that the next fund-raising cycle may be unpleasant. I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile.

Burn Rate 150
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Why VC’s Don’t “Crossover” Invest

Agile VC

But even for healthy VC firms, as a firm grows or shrinks they are typically adding or subtracting LPs in each subsequent fund (still usually a minority of overall committed capital in the fund). Acme raises Fund IV and now Startup X, a breakout winner of Fund III, is raising a Series D.

LP 178