Ask HN: Is it appropriate to ask a startup how much runway they have left?

4 points by bostonvaulter2 ↗ HN
When you're interviewing at a startup is it appropriate to ask about how much runway they have left? Or maybe ask if they have funding for a year's worth of time at the current burn-rate?

3 comments

[ 3.5 ms ] story [ 15.3 ms ] thread
For sure, you are risking lower pay/less security for the chance of making it up in equity; as complete as info as you can gather is a must.
Yes, it is. However, they will probably lie to you about the cash they have on-hand, their burn rate, and when they'll hit break-even.
When I interviewed at Mahalo back in 2007, I asked and they said they had about a year of runway left. I asked why they were hiring people in Santa Monica instead of in the Philippines and they said they didn't believe in offshoring. A year later they laid off a bunch of people and shifted them to the Philippines. Glad I asked.

http://www.businessinsider.com/2008/10/jason-calacanis-mahal...