Funny how your mind gets busier to work and build revenue in Europe without a comfortable cushion like SF guys seem to have.
As the article says,
> If you don't do this [i.e., lay off staff and shut down gracefully] and instead end up with zero cash and outstanding payroll, tax or other obligations, things will get Very Bad.
Unlike this is the ticking time bomb you have on your back the moment you take on investment. It's now do-or-die and when the money runs out you pretty much have no choice but to liquidate - often the decision isn't even yours to make.
This article mainly applies only to the later. It is exciting when you get a big investor check but it's not the only way. I always encourage friends to think about investments that way - rather than just a free bag of cash!
I occasionally get approached to help seed startups whose entire plan depends on a) getting funded and b) getting acquired. I enquire about a path to profitability and the answer frequently reveals a token effort. The CACs are unrealistic, market penetration estimates are hopelessly optimistic, etc. The entire play is acquisition or death.
If you are breaking even you have infinite runway.
If you have "low runway" every month than your company is already dead. Runway is the time left, with current revenue and expenses, before your company is out of money.
Bootstrapped companies should typically have infinite runway by either keeping expenses minimal or growing revenue.
Everyone here in the SF Bay Area doesn't have a comfortable cushion. I bootstrapped my business in 2014 and didn't make a single penny the whole year--in fact, was in the red since I'd personally been lending money to the company.