Solana co-founder: It is key for startups to avoid running out of funds

Solana co-founder Anatoly Yakovenko shared key points for startup survival on the X platform. He emphasized that the only reason a startup fails is to run out of money, and avoiding running out of money will ensure the company's survival. Yakovenko warned entrepreneurs to be highly vigilant about long-term contracts, such as long-term leases for offices or data centers, which are equivalent to debt. He recommended keeping contract expenses below 20% of total expenses, otherwise it is very dangerous. Yakovenko also pointed out that large teams will quickly burn through funds. He suggested that every employee should prove their value through profits or revenue. If the company has 18 months of funds in reserve, it will need to achieve profitability or refinance within 6-12 months. If it is still not profitable after 6 months, it may need to cut expenses by 33%; after 9 months, it will need to cut 50%. Considering that contract expenses cannot be cut, this may lead to layoffs of 50% or even 70%.