The Riskiest Venture-Backed Startups Are 3H’s: High Growth, High Churn and High Burn
SaaStr
MARCH 8, 2024
The burn and the churn. The burn was at a stunning $2m a month, and the churn had spiked. It’s sort of a death spiral: High churn, but no burn = struggle, but the engine self-perpetuates to an extent. What’s really hard to solve is The 3H’s: High Growth for a while — but High Churn. And High Burn.
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