How Cutting Cloud Costs Can Help Startup Fundraising | HackerNoon

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How Cutting Cloud Costs Can Help Startup Fundraising | HackerNoon
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'How Cutting Cloud Costs Can Help Startup Fundraising' startups cloudcomputing

Every year, thousands of startups launch with the hope of becoming the next big thing. But the vast majority of them fail. Even among venture-backed startups,The idea of the "burn rate" is key to understanding why startups fail. A startup's burn rate is the rate at which it is spending money. If a startup has a high burn rate, it will run out of money quickly.__of failed businesses cite cash flow problems as a factor in their failure.

If a startup finds itself in this situation, it has two options: raise more money or cut costs. But neither of these options is easy. Raising more money is difficult, as investors are often reluctant to put more money into a failing company. And cutting costs can be just as hard, as it can mean laying off employees or cutting back on important R&D spending.

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