Garry Tan: Profit can replace Series A funding for startups

Garry Tan: Profit can replace Series A funding for startups
Profit approach rivals Series A funding

Garry Tan, who serves as president and CEO at Y Combinator, advised startup founders to focus on profitability and operating with efficient decision-making processes. He stated that generating $10 million profit per year and reinvesting it can be as effective as raising a Series A round, but without dilution. Tan added that the best startups are already following this approach and dismissed concerns over current difficulties in raising Series A or B funding.

Tan previously explained how startup harnesses can use token burn incentives to create real utility by automating repeatable processes. He has also urged businesses to adopt finance agents for quicker insight into company spending and improved ROI analysis. Both strategies focus on operational efficiency and measured resource allocation for startups.

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