How Much Should You Spend After Fundraising? - Gustaf Alströmer

YC Partner Gustaf Alströmer on how much money to spend after fundraising.

Topics
00:05 - Too many companies spend their money too fast
00:27 - Most companies that raise a seed round will not be able to raise a Series A
00:40 - Fundraising is just a means to an end
00:55 - An average funding round lasts 18-24 months
1:25 - When you're making money you can increase your spend proportionally
1:45 - Spend your money like you'll never be able to raise again

[ycombinator]

Topics
00:05 - Too many companies spend their money too fast
00:27 - Most companies that raise a seed round will not be able to raise a Series A
00:40 - Fundraising is just a means to an end
00:55 - An average funding round lasts 18-24 months
1:25 - When you're making money you can increase your spend proportionally
1:45 - Spend your money like you'll never be able to raise again

[zsomborsz]

This leads us to $8, 333 ($150k/18) — the total you can spend monthly if you get into YC and don't have any revenue.

[danielr]

A hack I don't see very often that might be useful: once you've got your seed fund, try moving to places where the costs of living are lower. I figure that's a great way to stretch your funding 8 to 10 times longer.

[samuelpeace]

Good advice for companies who eventually get seed fund. I'll extend it to "build your company like u'll never raise seed money."

[Blubbha]

We need a german YC. ^^ good advice! Thanks for sharing.

[thomas-sinkala]

@anonymous, I mistakenly deleted my comments trying to edit a reply. Just know I appreciate your feedback. Thank you very much.

[shouryachalla]

PLZZ someone clarify my doubt
What is good to start when you have 8 months of runway?(1:10)
Gustaf meant the fundraising process right

[khouse]

Lol very true although in biotech if you don’t spend your money you fail