“Prepare for the worst” in the event of a recession

In this same sense, in point 4 of the letter, they advise that, “Regardless of your ability to raise funds, it is your responsibility to ensure that your business survives in the event that you are unable to raise more funds for the next 24 months.”

It also warns that if an entrepreneur has plans to raise money in the next 6 or 12 months “it is possible that he is raising it at the height of the recession. Remember that his chances of success are extremely low, even if your company is doing well.”

And, in point 9, YC reminds that many competitors will not plan well, maintain a high level of leveraged venture capital spending, and only realize they are broke when they seek their next round of funding.

Thisfor those who plan well, could represent “an opportunity to gain a good part of the market, during an economic downturn, simply by staying alive.”

At the end, the letter is accompanied by a link to a YouTube video where these tips are deepened.

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