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There are obviously lots of businesses that benefit from VC investments, and for lots of reasons. For example, at some point, hopefully, you're going to have a
by ssharp 11y ago
There are obviously lots of businesses that benefit from VC investments, and for lots of reasons.
For example, at some point, hopefully, you're going to have a product that lots people are willing to pay for, but those people don't really know about it. You could reinvest revenues from existing customers in order to fund growth, but that could take many multiples longer than if you got an influx of cash to do that.
There are lots of first-mover advantages as well. Or if you're taking on a big competitor, that faster you grow, the less time they'll have to adapt. There are also a lot of businesses that eventually become profitable that simply cannot be profitable early on.
I personally don't like these types of businesses and would much rather bootstrap a lifestyle company or companies, but that's a personal preference and I know it limits the types of businesses I could start.