Pivot iff - you’ve learned a rare and valuable insight (a « secret » in Thiel’s parlance) AND - you’ve built solid assets in the current company (tech, clients...) for exploiting said secret ELSE Restart from scratchhttps://twitter.com/WorkMJ/status/1064482637018992640 …
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On average, I would say that founders tend to err more in burning cash till the last penny clutching at every straw, than in giving up before they're out of money. In the latter case, VCs typically only recoup 10-25c on the dollar.
I haven't seen as many companies as you have most likely, but yeah...it definitely seems like founders err on the side of burning cash, diluting their stake if they're successful or reducing their chance of success if they're not.
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With that said, if I were a VC and I thought I had a good founder with a bad idea, I'd encourage him to pivot on the leftover money ASAP. If I thought I had a bad founder with a bad idea, I'd encourage him to return the money. Reasonable?
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Well, pivoting is not imho 100% a decision. I think you have to stumble upon something great. It’s often not cost effective to test ideas with a whole company running idle. Now when you have a great founder with a nice (but not yet great) idea is when the decision is hard
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