Advice to young startups

The NYT reprinted an email sent by angel investor Ron Conway to his portfolio companies. And it is the same message that he sent out in May 2000: Godfather Tells Start-Ups to Fire People and Raise Cash.

You should lower your “burn rate” to raise at least 3-6 months or more of funding via cost reductions, even if it means staff reductions and reduced marketing and G&A expenses. This is the equivalent to “raising an internal round” through cost reductions to buy you more time until you need to raise money again; hopefully when fund raising is more feasible.

If you are in a funding cycle, you should raise your funding as soon as possible and raise as much as possible but face the fact that if you can’t raise money now you must cut costs.

Now, I wonder what advice he has for employees at those companies?