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Why bother with investors then? If product has positive and useful impact, you’ll get money from clients. Investors are a painful crowd to deal with, very snea

Why bother with investors then? If product has positive and useful impact, you’ll get money from clients. Investors are a painful crowd to deal with, very sneaky leagalease and make it easy to lose your product/company, esp if it gets any traction.

BasDirks 7y ago
Could you elaborate on the painful crowd part?
- edoceo 7y ago
  When it just you and clients paying there are two parties in close alignment. The investor third party doesn't want what you or your clients want. You want to build a good product that people like and use. Clients want a good product. Investors want to increase capital. So, while you and clients walk a path, together. The investor is there for a different reason. And that reason can create uncomfortable situations. You and the clients can solve problems together. How does the investor solve their issue? Where does their increase in capital come from? Your time and your clients money.
muzani 7y ago
Bad investors generally get identified fast in a good startup community, and word spreads. The good investors realize that it's easier to land good deals by being nice, e.g. http://paulgraham.com/ronco.html http://paulgraham.com/ronco.html Generally the idea is that investors accelerate growth. In most businesses, you don't even want investors. But startups are high capital and exponential profitability. Exponential means it's very slow and doesn't cover living costs for a while. If you want half a million dollars, the fastest way to do it is to open a restaurant, do dropshipping, maybe even consulting. Many bootstrappers do so. There's a hidden cost - it sucks away all your focus. Investors are a hack around this. You go to an investor because you don't want to spend a year consulting, and you want to take risks that don't cost you a couple years savings. The investor goes to you because you're a better deal than crypto or S&P 500.

BasDirks 7y ago

Could you elaborate on the painful crowd part?

edoceo 7y ago
When it just you and clients paying there are two parties in close alignment. The investor third party doesn't want what you or your clients want. You want to build a good product that people like and use. Clients want a good product. Investors want to increase capital. So, while you and clients walk a path, together. The investor is there for a different reason. And that reason can create uncomfortable situations. You and the clients can solve problems together. How does the investor solve their issue? Where does their increase in capital come from? Your time and your clients money.

muzani 7y ago

Bad investors generally get identified fast in a good startup community, and word spreads. The good investors realize that it's easier to land good deals by being nice, e.g. http://paulgraham.com/ronco.html http://paulgraham.com/ronco.html Generally the idea is that investors accelerate growth. In most businesses, you don't even want investors. But startups are high capital and exponential profitability. Exponential means it's very slow and doesn't cover living costs for a while. If you want half a million dollars, the fastest way to do it is to open a restaurant, do dropshipping, maybe even consulting. Many bootstrappers do so. There's a hidden cost - it sucks away all your focus. Investors are a hack around this. You go to an investor because you don't want to spend a year consulting, and you want to take risks that don't cost you a couple years savings. The investor goes to you because you're a better deal than crypto or S&P 500.