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1. Whether I can get funding is a second order question. Who cares if I can actually get funding? The first thing to figure out is whether I NEED funding and wh

by Tawheed 16y ago

1. Whether I can get funding is a second order question. Who cares if I can actually get funding? The first thing to figure out is whether I NEED funding and whether I WANT funding and all the things that come along with it -- and that is all this post focuses on. 1a. Regardless of how hard it may be to get funding, the value equation has changed. I don't NEED funding to build a web startup, I don't NEED the VC... I value it. And that is a difference you are missing. 2. On me not wanting another MASTER: Why would someone give me money without putting in place some sort of accountability? Some sort of plan? I wouldn't even want to take on funding from someone without being sure that I can deliver on what I am promising, and even more importantly, I wouldn't want to take on an investor that throws money at me and just forgets about me.

webwright 16y ago
"2. On me not wanting another MASTER: Why would someone give me money without putting in place some sort of accountability?" Most angels don't. I'm not making this up. Sure, there are contractual protections to make sure you don't sell the company for $1 to your Aunt Linda. And yeah, they want an interesting vision (most know that deep planning makes you too rigid, so don't encourage it). The best balance is an angel that gives money, gives great advice and help when you ask for it, keeps you a little disciplined by asking hard questions, but largely stays out of your way and lets you run the company. Most angels know this-- and that's how most of them behave (I've raised money from half a dozen angels and pitched 15 or so). It seems like you agree-- you don't want a master and you don't want an angel who "just forgets about you". 90% of them are neither-- so an angel looks like a good fit if these businesses (or future ideas) reach a fundable place. My contention (which stands) is that your concerns with early stage investment are wrong (i.e. fear of loss of freedom/control)-- unless you're talking about the freedom to build an unfundable business... which is fine. A LOT of really freakin' awesome businesses aren't right for equity investment.
- Tawheed 16y ago
  I think you are fooling yourself by thinking that you do not give up any freedom/control by taking someone else's money.

by Tawheed 16y ago

webwright 16y ago

"2. On me not wanting another MASTER: Why would someone give me money without putting in place some sort of accountability?" Most angels don't. I'm not making this up. Sure, there are contractual protections to make sure you don't sell the company for $1 to your Aunt Linda. And yeah, they want an interesting vision (most know that deep planning makes you too rigid, so don't encourage it). The best balance is an angel that gives money, gives great advice and help when you ask for it, keeps you a little disciplined by asking hard questions, but largely stays out of your way and lets you run the company. Most angels know this-- and that's how most of them behave (I've raised money from half a dozen angels and pitched 15 or so). It seems like you agree-- you don't want a master and you don't want an angel who "just forgets about you". 90% of them are neither-- so an angel looks like a good fit if these businesses (or future ideas) reach a fundable place. My contention (which stands) is that your concerns with early stage investment are wrong (i.e. fear of loss of freedom/control)-- unless you're talking about the freedom to build an unfundable business... which is fine. A LOT of really freakin' awesome businesses aren't right for equity investment.

Tawheed 16y ago
I think you are fooling yourself by thinking that you do not give up any freedom/control by taking someone else's money.