Solana Co-founder: It's Crucial for Startups to Avoid Running Out of Funds

Solana co-founder Anatoly Yakovenko shared key points for startup survival on platform X. He emphasized that the only reason startups fail is due to running out of funds, and avoiding this ensures company survival.

Yakovenko warned entrepreneurs to be highly vigilant about long-term contracts, such as leasing offices or data centers, which are essentially debts. He suggested keeping contract expenses below 20% of total expenditure; otherwise it's very risky.

Yakovenko also pointed out that large teams can quickly deplete funds. He advised each employee should prove their worth through profit or revenue. If a company has an 18-month reserve of funds, it needs to achieve profitability or refinance within 6-12 months; if not profitable after six months, there may need to be a reduction in spending by 33%; after nine months, a reduction by 50%. Considering contract expenditures cannot be reduced, this could lead to layoffs of up to 50% or even 70%.