Solana Lianchuang: Start-up companies avoid running out of capital is the key
Anatoly Yakovenko, co-founder of Solana, shared the key points for the survival of a start-up company on the X platform. He stressed that the only reason for the failure of a start-up company is to run out of funds, and avoiding running out of funds ensures the survival of the company. Yakovenko warned entrepreneurs to be highly vigilant about long-term contracts, such as long-term leases of offices or data centers, which are equivalent to debt. He suggested keeping contract expenses below 20% of total expenses, otherwise it is very dangerous. Yakovenko also pointed out that large-scale teams can quickly consume funds. He suggested that every employee should prove their worth through profits or revenue. If the company has 18 months of capital reserves, it needs to be profitable or refinanced within 6-12 months. If it is not profitable after 6 months, it may need to cut expenses by 33%. After 9 months, it needs to be cut by 50%. Considering that contract expenses cannot be reduced, this can lead to layoffs of 50% or even 70%.