In the long run, it is seen that those who spend wisely are better to deal with economic downturns. Their employees are never accustomed to spoiling comforts.

On the other side, many geek type or creative type employees value coolness. Thus, this spending can be seen as justified for business to function.

There can be cheaper alternatives to keep these employees happy as well.

Finally, one has to see an unbiased view on company priorities at that stage, and make the decision.

Thus, the word ‘wisely’, and not ‘frugally’ is very aptly used in this blog.

On the whole, I agree that self funded startups are wiser with spendings and take less financial risks.

Yes, sometimes $2000 or so look peanuts. I agree. But at the same time, think about that money when it’s going from your pocket. Then we think twice before spending it.

The bottom line is, we just have to keep this thought in mind that VC money is not there to spend. We should treat it as our own money. At the end, if buying expensive laptops make sense, then sure, go buy it, but just make sure we think twice before it.

Both solve the basic problems but the ones with bigger mind share are the ones you would crave to visit every day. Such companies really need to go a step further to retain employees, attract /steal them from their competitors which is certainly not an easy task. Remember, for them employees are the biggest asset (as you already know they are burning money ) The least they can do is make their employees as comfortable as possible. A one time expense of 2000$ per employee is peanuts to achieve this..