So basically, the thesis is that a startup only needs $80k to determine if it may succeed or definitely fail and that $150k provides little added benefit in determining success for those that will be successful, but let failing startups stick around for too long sucking up time and attention. Tough love, but sounds like a great idea.
I'm curious what it might do to valuations. Now the startups have 12 months of runway instead of 18-24 months depending on the number of founders. This means that at demo day, investors know they could potentially squeeze startups a bit more because the runway is shorter. Hopefully the sheer competition will mitigate VC propensity to keep telling investors, "Hey come back next month with updated numbers" until the startup is willing to take money at any valuation.
I'm curious what it might do to valuations. Now the startups have 12 months of runway instead of 18-24 months depending on the number of founders. This means that at demo day, investors know they could potentially squeeze startups a bit more because the runway is shorter. Hopefully the sheer competition will mitigate VC propensity to keep telling investors, "Hey come back next month with updated numbers" until the startup is willing to take money at any valuation.