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> Companies who are about to run out of money will often claim to pivot in a different direction, launch new products, or go on hiring binges.

Why would a company that is about to run out of money go on a hiring binge?




Because a 1% chance of turning the company around is better than a guaranteed slow bleed to insolvency.


To add to this, growing headcount and fancy marketing can get the dumb money to re-up.

If you double customer acquisition costs through sales HC, you’ll probably get some new growth.

If you build a whole new team for a trendy thing, it might match some investor thesis.


I think you have cause and effect backwards.




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