The article emphasizes that in the startup world, while growth and expansion are commonly prioritized, liquidity becomes paramount during economic downturns or market uncertainties. Liquidity refers to a business's capacity to operate effectively and adapt to changing circumstances. The author uses examples from crypto and traditional markets, highlighting how businesses can falter not due to their product's merit, but from a lack of liquidity that prevents them from pivoting or evolving. This situation has been notably evident during crises like the pandemic and recent economic challenges, where even profitable businesses struggled to navigate their financial landscapes.
‘Liquidity is oxygen. And when it runs out, even the strongest companies start to choke.’
‘Founders who had raised too fast…found themselves stuck. Not because the market didn't need their solution, but because they no longer had the liquidity to pivot.’
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