4 ms·
I'm a solo dev doing $700k yearly across two saas products. I'm also the founding engineer at Reforge (e.g. I've done the VC game from A16Z). There are two thi
by buf 4y ago
I'm a solo dev doing $700k yearly across two saas products. I'm also the founding engineer at Reforge (e.g. I've done the VC game from A16Z).
There are two things I look at when raising VC.
1. What's the TAM of my product and will a capital injection get me there faster?
2. Do I actually want to raise capital or do I want to work at my own pace?
The last couple of years (after Reforge), I've just been working at my own pace -- healing from my last VC run.
- popcorncowboy 4y ago> healing from my last VC run @rainbowtroutz pay attention to this line.
- jimnotgym 4y agoPoint 2 is very important. Do you even need more capital? What would you do with it if you had it? If you are sat there frustrated that your product could be a game changer with just a few million dollars more capital then VC's are worth considering. If you don't need the capital then why share equity!
- kennxfl 4y ago>2. Do I actually want to raise capital or do I want to work at my own pace? Haven't VC-backed companies crushed small developers in niche markets who refused to scale? In most instances
- robocat 4y agoNot really: some niches get competed out as a side-effect of addressing a large market. VC almost exclusively invests in businesses that have a large TAM (Total Addressable Market) and a VC is not invested in a business that has a small, niche market. The VC model is invest x millions, aim for one win in the billions that gets all the return to the fund, and then cut the losses for all the other fund’s investments that didn’t win big (wind-up or sell - recover the VCs preferential money and don’t give a shit if common share holders like founders get $0).