When to Return Capital vs Keep Pivoting
Written by Harry Prabandham
Curated by Rubric Financial
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The Decision Framework
- If the problem is execution (team, process, speed), keep going. Execution problems are fixable with the right changes
- If the problem is fundamental economics (market too small, unit economics don't work, no path to margins), seriously consider returning capital
- If you've been pivoting for 18+ months without finding product-market fit, be honest with yourself about whether more time and money will change the outcome
- Spending 2-3 years burning through capital to prove something doesn't work destroys more value than returning capital early
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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