3 ms·
> If you don't have users, you don't have a company. Right. But it's tough to find any such statement on the Web site of a seed or series A VC. If they want
by graycat 10y ago
> If you don't have users, you don't have
a company.
Right. But it's tough to find any such
statement on the Web site of a seed or
series A VC.
If they want me to have users, then they
want me to have revenue. For that I need
to get my first server built, running, and
live on the Internet. And once I have
that, I can just get the publicity and
mostly otherwise see if people like the
site without any equity funding.
If the users do like the site and the
usage grows, by the time that first server
is fully busy, I will have ballpark
$200,000 a month in revenue with less than
1% of that as expenses and 99+% of it as
pre-tax earnings. Then since I'm a solo
founder and 100% owner, why should I
consider equity funding?
Or, by the time they want to write me a
check, I won't need it.
> Or your $10bn/year metric is non-sense.
Not at all. Planning is important, and
that's how the planning works out. Sure,
there is the assumption that people like
the site. But the site itself is not much
of a question since the software is
essentially ready for quite serious
production.
If the VCs want to wait until the $10
billion is much easier to see, fine for
them. Then they can offer to write me a
series A check for $5 million for 1/3rd of
my company? Gee, thanks, guys, your $5
million is about 5 hours of my revenue,
nearly all of which is pre-tax earnings.
> I see 0 ads per session because I use an
ad blocker.
If that gets to be a problem, then I will
send the ads from my server and not have
my Web pages get the ads from ad servers;
besides part of my work is some unique and
especially effective ad targeting where it
will be easier for me just to send the ads
from my server farm; ad blockers will,
then, have to tell the difference between
Web page images that are ads and ones that
are content, both coming from the same
domain name. Lot's of luck, there, guys!
> What exactly is the pressing problem
you're solving?
I told the VCs. None of them gave a sh_t.
My intention here is not to pitch VCs.
Instead, I'm just trying to give other
entrepreneurs the benefit of the painful,
wasteful lessons I learned: In shortest
terms, just pick a project you can do from
your own checkbook, build that business,
wait for the VCs to call you, and, then,
see if you are still willing to accept
their check. Likely you won't be.