Thought Leadership Threads
Frank Rotman
@fintechjunkie
Every business has a core function. Some businesses make athletic shoes while others make wide screen televisions.
What’s become clear over the past week is that many people don’t understand what Banks actually do.
A simplified explanation if you're interested:🧵👇
Yusuf Ozdalga
@yusuozdalgaThere is lots of anxiety in the start-up community after SVB became the 2nd largest bank failure in US history.
This is understandable. Lining up action plans with back up options is key.
Undertake all planning and communication in a calm manner. This is in everybody’s interest
Frank Rotman
@fintechjunkieWhat the heck do you do if a Founder is fully vested and asks for an options refresh?
It happens all the time but with valuations down the answer isn’t simple.
A few thoughts on a third-rail topic: 🧵👇
Frank Rotman
@fintechjunkieUnderfunding a startup is risky because downstream capital might not be there if the startup hasn’t made material progress.
It’s a terrible idea to fund a plan that only gets a startup 80% of the way to Mars!
Here's why:🧵👇
Frank Rotman
@fintechjunkieMany companies went through a major layoff in 2022. Many more will reduce their staff in 2023.
When the dust settles, businesses will be leaner but challenges will still remain.
Here's a valuable checklist for survivors:🧵👇
Frank Rotman
@fintechjunkieFounders are busy re-structuring their operating plans to reduce burn.
A reduction in burn almost always slows growth which #VCs will interpret as a negative signal.
The result is confusion and loads of bad advice.
Is this a solvable problem? 🧵👇
Frank Rotman
@fintechjunkieGigantic businesses can be created when an amazing Founding team focuses its attention on a rock-solid business idea that’s perfectly aligned with an emerging mega trend.
This is what #Founders and #VCs live for.Curious what this looks like for a 15-month-old company?
Frank Rotman
@fintechjunkieAn important decision every business makes is what to do with its cash💵.
Most thinly capitalized companies keep their cash in a business checking account.
But there are better options for businesses that have a year or more of runway. Much better! 🧵👇
Frank Rotman
@fintechjunkieThe #startup ecosystem has been turbocharged in recent years due to massive capital inflows.
A downside is that the playbook has been lost around how to build a healthy business.
Being able to make money with a single product at low levels of scale needs to be re-learned! 🧵👇