Startups should consider thinking more like a PE funded private equity company if they are not eligible for VC funding. This means cutting burn to achieve positive cash flow and gain control over their own destiny. The snip provides guidance on what makes a company eligible for VC funding, including criteria such as growth rates, gross margins, net dollar attention, cact payback, and burn multiple. It is noted that many startups are currently in the danger zone and may struggle to raise another VC round. However, even startups with high ARR can improve their situation by cutting burn. The combination of how VCs and PE firms look at a business can be hyper additive and provide a clear mandate for the CEO to operate. PE firms are particularly beneficial for larger companies with revenues of 50 million and above. Adding a PE firm to the board can help startups focus and execute faster due to their different toolkit and reaction to misexecution.