For years, the playbook for startups in Silicon Valley was crystal clear (if not particularly economically sound). Raise as much as you can, and never turn money down. Get users, more users, and then more. Figure out the business model part later.

Yet by the outset of 2020, the sheen was already off the overvalued-company-with-a-scary-balance-sheet. I have long been advocating for a new breed of startups — “stallions” — companies that may not be as sexy as a booming consumer app but that demonstrate admirable fiscal prudence.

Delay Raising Money For As Long As You Can

If you’re not surviving on your own, the market may be telling you something. More cash might help, but it may just make things messier.

Hire The Best Talent Wherever You Can Find It

Creating a culture of inclusion is about more than just decency and common sense — it is a major boon for the bottom line. The data is overwhelming that companies with a more diverse workforce outperform their competitors. One often overlooked consideration is geographic diversity. Hiring exclusively from Silicon Valley or established tech hubs like Austin or New York may inadvertently close you off to the best talent.

Source: Venture Beat