The clock runs on its own — one game day every real second, and up to ten times
that — so things happen whether you are ready or not. You are not optimising a
single number. You are deciding what to do about the month you are having.
The money you raise costs you the company
Term sheets are negotiable — liquidation preference, anti-dilution, pro-rata,
vesting acceleration — and every round dilutes you. Investors run due diligence
and can find something in it. Investors who backed you before remember it, across
companies.
A board that can overrule you
Investors take seats. Past a certain point the board approves your IPO, your
acquisitions, your pivots and your own salary. Fall far enough below ten per cent
of your own company and they can remove you as CEO — which, measured across
hundreds of simulated runs, kills more companies here than running out of money
does.
Hiring is a negotiation
You name the salary and the equity, and they can still say no. A company in the
middle of layoffs or a crunch is harder to hire into. Then you have to keep
paying the ones who said yes.
Rivals that fight back
Competitors keep their own books, raise their own rounds when you start beating
them, undercut your pricing and poach your engineers by name. Get big enough and
a new one shows up in your category.
A trade paper about you
Cap Table Quarterly writes up your company every ninety days — lead
story, the numbers, one line of verdict. It will not flatter you. If you have two
months of runway, that is the headline.
The founder is a separate person from the company
Your bank account is not the company’s. You start with some savings and a
monthly cost of living, and you are paying yourself nothing. You can set your own
draw — until an outside director joins the board, after which your pay is
something the board votes on.
Going public is a whole second game
IPO or direct listing; a share price that answers to revenue growth and earnings;
quarterly results measured against analysts’ estimates; a 180-day lockup
before you can sell a single share; dividends, buybacks, splits — and an activist
investor who may decide you should not be running it.