<story><title>Advice for companies with less than 1 year of runway</title><url>http://www.themacro.com/articles/2016/01/advice-startups-running-out-of-money/</url></story><parent_chain><item><author>Animats</author><text>The alternative is becoming profitable as soon as possible. Then you get run over by someone with better access to capital who can absorb losses. Example: Sidecar.[1]&lt;p&gt;[1] &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;venturebeat.com&amp;#x2F;2016&amp;#x2F;01&amp;#x2F;20&amp;#x2F;sidecar-we-failed-because-uber-is-willing-to-win-at-any-cost&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;venturebeat.com&amp;#x2F;2016&amp;#x2F;01&amp;#x2F;20&amp;#x2F;sidecar-we-failed-because-...&lt;/a&gt;</text></item></parent_chain><comment><author>danieltillett</author><text>This is a very good reason to avoid markets like this unless you are the most well funded. In some markets there just isn&amp;#x27;t a first mover advantage.&lt;p&gt;The question is how much of a monopoly uber can build once they shift to profit extraction. There is little evidence that their customers are sticky against a new competetor willing to accept a lower rate of return.</text></comment>
<story><title>Advice for companies with less than 1 year of runway</title><url>http://www.themacro.com/articles/2016/01/advice-startups-running-out-of-money/</url></story><parent_chain><item><author>Animats</author><text>The alternative is becoming profitable as soon as possible. Then you get run over by someone with better access to capital who can absorb losses. Example: Sidecar.[1]&lt;p&gt;[1] &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;venturebeat.com&amp;#x2F;2016&amp;#x2F;01&amp;#x2F;20&amp;#x2F;sidecar-we-failed-because-uber-is-willing-to-win-at-any-cost&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;venturebeat.com&amp;#x2F;2016&amp;#x2F;01&amp;#x2F;20&amp;#x2F;sidecar-we-failed-because-...&lt;/a&gt;</text></item></parent_chain><comment><author>bitsweet</author><text>UBER has sustained growth and momentum which provides access to capital so they can to pay win at the moment. The OP&amp;#x27;s article is contextual to a startup running out of cash (e.g. &amp;lt; 2 months) which happens because the startup hasn&amp;#x27;t sustained growth and investors are no longer interested.</text></comment>