Netscape founder and Andreessen Horowitz partner Marc Andreessen has joined the chorus of people warning that startups are taking on too much risk and burning too much cash.
The so-called startup burn rate conversation was sparked by Benchmark’s Bill Gurley, who recently told The Wall Street Journal that “Silicon Valley as a whole … is taking on an excessive amount of risk right now.” He believes startups are burning a dangerous amount of cash — an amount that resembles 1999 just before the dotcom bubble burst.
Here was Andreessen’s own warning on Twitter: “When the market turns, and it will turn, we will find out who has been swimming without trunks on. Many high burn rate companies will VAPORIZE.”
Read more: http://www.businessinsider.com/marc-andreessen-on-startup-burn-rates-worry-2014-9#ixzz3EUufI0Bl
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