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“One of the problems with raising money is it teaches you bad habits from the start,” said Jason Fried, the co-founder of the software company Basecamp, who has
by GrumpyNl 10y ago
“One of the problems with raising money is it teaches you bad habits from the start,” said Jason Fried, the co-founder of the software company Basecamp, who has written frequently on the perversions of the venture capital industry. “If you’re an entrepreneur and you have a bunch of money in the bank, you get good at spending money.”
But if companies are forced to generate revenue from the beginning, “what you get really good at is making money,” Mr. Fried said. “And that’s a much better habit for a business to work on early on, to survive on their own rather than be dependent on money people.”
- robhunter 10y agoI think there's a happy medium. Getting to the point of being sustainable by building what n customers want today gives you both the (infinite) runway, as well as hopefully some insight, into what 100n customers will want tomorrow.
- justinzollars 10y agoI've worked at startups that have taken no money (0) and those that have taken boat loads (Hundreds of Millions). I made much more money from the former situation.
- deleted 10y ago[deleted]