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> So businesses that could have been great bootstrap businesses will grow too fast with too high a burn rate and flame out at a series A or B crunch. Smart, pa
by 7Figures2Commas 11y ago
> So businesses that could have been great bootstrap businesses will grow too fast with too high a burn rate and flame out at a series A or B crunch.
Smart, patient entrepreneurs can take advantage of this.
Let angel and VC-backed companies validate markets, and pursue the markets they vacate after the broader crunch occurs.
- czbond 11y agoYou sir, are a smart man. And the only other person I've ever heard to suggest that besides myself (not tooting horn, just honest that no-one thinks that way).
- Douceur 11y agoThat's based on the assumption that the crunch will happen though, and even if those companies flop, I think it's quite important to analyse exactly where they went wrong rather than put them down as just another startup that couldn't scale properly. If you're a bootstrapping startup hoping to enter the same market, this is crucial as you can at least try and avoid those mistakes - who's to say that you won't crash and burn too? (This is more like advice to myself actually as I'm currently in a dilemma between that "wait" that you've just described and the intense worry of not getting first-mover advantage through that waiting)