It's not 2021 anymore.
Funding didn't disappear. The game changed. And most people didn't get the memo.
Startups stopped hiring.
Because funding got tight. Then AI happened. Now your coworker is GPT-4.
Your job market just got 3x smaller. Hope you're really good at what you do.
Hiring is expensive. Revenue per employee is everything now.
The talent market flipped. Suddenly everyone's available.
Series A used to mean 22 people. Now it means 12.
$400,000 ARR per employee is the new bar. Hope you're productive.
Each human now has an AI copilot. Code faster, design smarter, sell better.
If you're not 2x more productive than 2022, you're falling behind.
Smaller teams, bigger outcomes. The math finally works.
Portfolio companies need half the people to hit the same milestones.
VC is a Growth Drug. Not a Vitamin.
You need 300% growth. You need a GPT wrapper. You need to be Cursor.
Venture was never for everyone. Now it's barely for anyone.
Most bridges collapse.
8% of 2022 seed startups that took a bridge made it to Series A. Bridge ≠ plan. It's often denial in funding form.
That equity you were promised? Probably worthless.
A bridge buys time. Not success. Fix the fundamentals.
Most bridges are founders avoiding hard decisions.
Raised in 2021. Still alive. Not growing.
There are thousands of these. They might be yours.
Founders can't quit. VCs won't kill. Everyone waits.
You can build alone. Doesn't mean you'll get funded.
35% of startups are solo-founded. 17% of funded ones are.
"If you couldn't convince one person to quit their job and join you, how will you convince customers to buy from you?"
— Every VC everYour 0.5% might be worth $0.
Dilution, liquidation, down rounds. It's all here to crush your dreams.
Exit Scenario: Company sells for $120M
The company sold for $120M. You got $3,200. Nice.
Should have negotiated salary instead of equity.
This is why liquidation preferences exist.
Always understand the cap table before you give advice.
Be nosy. It might save your year.
If you don't ask these questions, someone else will. And they'll get promoted instead.
Answer these honestly. Your team is asking behind your back.
These are the questions that matter. Everything else is noise.
Is your startup default alive? Or default delusional?
Most companies won't IPO. Many won't raise again. Some should shut down.
Raising Again
VCs want to see 300% YoY growth, AI integration, and a path to $100M+ revenue. If you don't have these, you're not raising.
- Perfect your AI story
- Show exponential growth
- Find warm intros
- Prepare for 18+ month process
Bootstrapping
Cut burn to $0, focus obsessively on revenue. This is the path most startups should take but won't admit.
- Eliminate non-revenue generating roles
- Move to cheaper locations/remote
- Focus on enterprise sales
- Build profitability muscle
Getting Acquired
Find a strategic buyer who values your team, tech, or customer base. Acquihires are real exits.
- Identify strategic buyers
- Build relationships early
- Highlight unique assets
- Be realistic about valuation
Folding Gracefully
Return remaining money to investors, help team find new roles, and move on. Sometimes this is the smartest choice.
- Calculate remaining runway
- Have honest investor conversations
- Help team with job placement
- Plan your next move
The game didn't end. It got smarter.
Build lean. Ask better questions. Don't pretend it's 2021.
For Engineers
Your skills matter more than ever. Choose companies that can pay you well and give you equity that might actually be worth something.
- Learn AI tools (everyone else is)
- Join profitable or near-profitable companies
- Ask about ARR per FTE before joining
- Negotiate salary over equity
For Founders
Default alive is the new default dead. Build something people will pay for. Raise money as a growth accelerant, not a life support.
- Focus on revenue per employee
- AI isn't optional anymore
- Smaller teams, bigger outcomes
- Have an honest conversation with your team
For Advisors
The companies in your portfolio need honest advice, not cheerleading. Help them face reality before they run out of money.
- Push for profitability conversations
- Help identify acquisition opportunities
- Be honest about funding prospects
- Support graceful exits when needed
Built with data from Carta, First Round, and the collective trauma of startup employees everywhere.
🥚