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Valuable framework. > "Venture backed tech companies are built to get huge or die. Like a lottery ticket, you either win big or lose. But outside of tech, it's
by anandvc 10y ago
Valuable framework.
> "Venture backed tech companies are built to get huge or die. Like a lottery ticket, you either win big or lose. But outside of tech, it's common to run a business to generate free cash flow for its owners."
Only a small percentage of companies should be pursuing venture capital. Unfortunately, the way the tech media celebrates raising money, it projects that it signifies success. This has misled many startup founders.
- kareemm 10y agoAgreed. I think part of the reason this is true is because there are so few models for the other paths. Big numbers are good stories. Raising $Xm is a much more interesting story to tell than 20% YoY growth to a business that has a natural revenue ceiling of e.g. $20m / year. So the media tells those stories and they become the dominant model.