Solana Co-Founder Shares Key Survival Tips For Startups

According to Odaily, Solana co-founder Anatoly Yakovenko recently shared crucial survival tips for startups on the X platform. He emphasized that the primary reason for startup failure is running out of funds, and avoiding this can ensure the company's survival. Yakovenko warned entrepreneurs to be highly cautious of long-term contracts, such as office leases or data center agreements, as these are akin to debt. He advised keeping contract expenses below 20% of total expenditures, warning that exceeding this threshold is extremely risky. Yakovenko also highlighted that large teams can quickly deplete funds. He suggested that each employee should justify their value through profit or revenue. If a company has an 18-month cash reserve, it needs to achieve profitability or secure refinancing within 6-12 months. If profitability is not reached within six months, a 33% reduction in expenses may be necessary; after nine months, a 50% cut might be required. Given that contract expenses cannot be reduced, this could result in layoffs of 50% to 70%.