The Dumbest Way to Think About Fundraising
A founder walks into Keith Rabois's office. 'I want to raise this much because it gives me two years of runway.'
Rabois tells them straight: that is stupid. He says it to their face. On the call. No filter.
Don't worry about runway. Worry about lift. A company is only valuable if you achieve lift. Runway is just a tactic.
The Airplane Metaphor That Changes Everything
Think about an airplane. Runway is just pavement. It means nothing unless you achieve lift.
You can extend the runway all you want. But if the plane never lifts off, you just spent more money going nowhere.
More runway without lift is just a longer road to the same dead end.
Three Risks. One Inflection. That's Your Round.
When Rabois invests, his team writes internal memos. What are the three key risks? What are the inflection points?
You can't solve all three in one round. Pick the most important inflection. Derive everything else from how you achieve it.
A great fundraise isn't about buying time. It's about buying one specific breakthrough.
Let the Tank Hit Empty
Most advisors tell founders to raise from a position of strength. Keep months of cash in the bank. Rabois calls this nonsense.
If you're approaching real traction, let the fuel tank drop to near zero. Hit a viral coefficient of one with three months of runway. Every VC on the planet knows how to invest in that.
Traction with no money is the most investable position a startup can be in.