4 ms·

Is it not?

by IpV8 10y ago

Is it not?

emodendroket 10y ago
Self-funding can be slower but can eventually create a large business.
- pjlegato 10y ago
  Got any examples of a self-funded business that was slow but eventually exceeded a venture-backed competitor? (Serious question.)
  - ThePawnBreak 10y ago
    Microsoft.
    - dilemma 10y ago
      Also, Facebook was funded by Zuck's parents in the beginning, letting him retain the large equity he has in thr company today.
  - deleted 10y ago
    [deleted]
  - mediaman 10y ago
    There's a bunch, but one example would be Morningstar, the mutual fund review company. Other than some small friends and family money at the beginning ($80k), Joe Mansueto never raised any money, until seventeen years after the founding and it was making substantial money already. This was in part by selling annual subscriptions, so he got cash in advance from each customer. Even though he lost money for a while by accounting rules, he was cash flow positive after a year.
  - icebraining 10y ago
    Dunno about exceeeding a venture-backed competitor, but Atlassian was bootstrapped from 2002 to 2010, when it already had $59M/year in revenue.
  - mbesto 10y ago
    Probably most of the fortune 500 companies today were not fueled by venture capital, but some other form of capital.
  - cal5k 10y ago
    Shopify bootstrapped for a loooong time before eventually accepting venture money.
  - emodendroket 10y ago
    Joel on Software had a decent article about this a long time ago: http://www.joelonsoftware.com/articles/fog0000000056.html http://www.joelonsoftware.com/articles/fog0000000056.html
  - tajen 10y ago
    Look at Atlassian... $6.2bn valuation on the stock exchange, after an IPO at $5.8bn. Self-funded.
  - billmalarky 10y ago
    Well not slow, but Plenty of Fish the dating site was a one man show for a while and it never took outside capital. It just sold for $575 MM.
- deleted 10y ago
  [deleted]
mbesto 10y ago
Mom-and-pop, or lifestyle businesses are categorized as companies who's customer delivery model can't scale well and/or who's market can't sustain a venture return regardless of how it's capitally backed. Capital comes in many forms, and VC is just a small blip in the total amount of money deployed to help businesses grow.

Is it not?

by IpV8 10y ago

Is it not?

emodendroket 10y ago

Self-funding can be slower but can eventually create a large business.

pjlegato 10y ago
Got any examples of a self-funded business that was slow but eventually exceeded a venture-backed competitor? (Serious question.)
- ThePawnBreak 10y ago
  Microsoft.
  - dilemma 10y ago
    Also, Facebook was funded by Zuck's parents in the beginning, letting him retain the large equity he has in thr company today.
- deleted 10y ago
  [deleted]
- mediaman 10y ago
  There's a bunch, but one example would be Morningstar, the mutual fund review company. Other than some small friends and family money at the beginning ($80k), Joe Mansueto never raised any money, until seventeen years after the founding and it was making substantial money already. This was in part by selling annual subscriptions, so he got cash in advance from each customer. Even though he lost money for a while by accounting rules, he was cash flow positive after a year.
- icebraining 10y ago
  Dunno about exceeeding a venture-backed competitor, but Atlassian was bootstrapped from 2002 to 2010, when it already had $59M/year in revenue.
- mbesto 10y ago
  Probably most of the fortune 500 companies today were not fueled by venture capital, but some other form of capital.
- cal5k 10y ago
  Shopify bootstrapped for a loooong time before eventually accepting venture money.
- emodendroket 10y ago
  Joel on Software had a decent article about this a long time ago: http://www.joelonsoftware.com/articles/fog0000000056.html http://www.joelonsoftware.com/articles/fog0000000056.html
- tajen 10y ago
  Look at Atlassian... $6.2bn valuation on the stock exchange, after an IPO at $5.8bn. Self-funded.
- billmalarky 10y ago
  Well not slow, but Plenty of Fish the dating site was a one man show for a while and it never took outside capital. It just sold for $575 MM.
deleted 10y ago
[deleted]

mbesto 10y ago

Mom-and-pop, or lifestyle businesses are categorized as companies who's customer delivery model can't scale well and/or who's market can't sustain a venture return regardless of how it's capitally backed. Capital comes in many forms, and VC is just a small blip in the total amount of money deployed to help businesses grow.