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One issue many founders never think of is that if you get VC and focus on growth and not profit, you are putting yourself in a riskier position where your share
by bobby_9x 11y ago
One issue many founders never think of is that if you get VC and focus on growth and not profit, you are putting yourself in a riskier position where your shares could be worthless.
If the company ever sells, they will definitely be looking at profit when it comes to valuation and if it's over-valued, VC gets paid out first.
I think many startup founders have it backwards: They have a good idea and they try to shoe-horn in a business model (that sometimes works).
Instead, come up with the business model first and then come up with a great idea around it. I've done this with my last two companies and I was profitable from day 1.