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No business starts with all the money it will ever need. Some YC companies are profitable in the first year and never need more. Some raise hundreds of millions
by tlb 15y ago
No business starts with all the money it will ever need. Some YC companies are profitable in the first year and never need more. Some raise hundreds of millions for capital intensive businesses like Dropbox. The size of seed funding is not a limit on the size of problems companies can tackle.
- absconditus 15y agoThe size of the problem is not at issue; the type of problem is. Many problems have a natural path from small to large scale. Some do not.
- phil 15y agoThat's certainly true. If you want to do something that requires 10s of millions of dollars to get off the ground, seed funding is not for you. Car and solar energy companies are great recent examples. Hugely capital intensive, and you'll note the pace of innovation is slower to match...
- tlb 15y agoI don't think there's any problem that doesn't benefit from being worked on by a small, focused, core team (what seed funding can cover) before scaling up. Step 1 in building an innovative business is never "hire 100 people".