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As Guy stated, for most companies, going the YC route qualifies as plan B more than plan A. Two guys living in their parents basement and giving up 6% for 15 -
by ryanwaggoner 18y ago
As Guy stated, for most companies, going the YC route qualifies as plan B more than plan A. Two guys living in their parents basement and giving up 6% for 15 - 20k so they can scrape by for six months is a far cry from giving up 30 - 40% for $1-2m so you can hire five people and burn through that money in less than a year building a product for all the users you're sure you're going to get.
- fallentimes 18y agoI definitely agree. I was responding more to langer's comment than the article itself. Now the decision is: does the money, leverage and ability to expand faster (in theory) we'd receive from plan A outweigh the amount of additional equity we'd have to give up.
- MaysonL 18y agoAnd the time and effort expended in the process of fundraising.
- fallentimes 18y agoAnd the enjoyment experienced from all the free breakfasts/lunches/dinners/beers/paint ball outings. :)
- netcan 18y agoI think that there's another question (& I think it's part of the point he's making): 'Is leverage and ability to expand faster, something you want?' In other words. not can you play the Startup/VC game without a VC but, should you be playing that game at all? One of the points was that 10,000 users was a failure for a VC funded startup. That's not necessarily the case if you don't have an inherent valuation you need to aim for.