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i dont get why you have 8 engineers when you can't afford it. does raising money give you a false sense of optimism?

I've seen a startup where they just broke even year after year for the past 6 years. they just increase the revenue for the sake of higher valuation but what ended up happening was, it created a toxic working environment, highest attrition rate (because they simply fire people and replace it), eventually a year came around when they started bleeding. eventually the founding members were fired. now the company is getting outdone by the competition, A list clients have jumped ship, and business is dwindling.



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