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> Like, do you want a 0.01% chance to raise money or a 2% chance to build a business that keeps you and a few others well paid and perhaps out of the rat-race.
by bsder 3y ago
> Like, do you want a 0.01% chance to raise money or a 2% chance to build a business that keeps you and a few others well paid and perhaps out of the rat-race.
Or, you do a raise; it keeps you out of the rat race for a couple years; and you move on when it implodes.
The problem VCs are having right now is that people have figured them out. If I have a business which can throw off cash, I don't need VCs unless I have a competitor I need to outrun. If I don't have a business which will get to cash, it's fine to take VC money to leave them holding the bag if I never find a "real" market.
- mdorazio 3y agoI'd say the problem VCs have now is that the decade of nearly-free money is over and everyone has 5% risk-free return investment opportunities. At the same time the sky-high valuations of many startups were based on dreams that never panned out, and exits are both sparse and unlikely to match values of 2 years ago. So as an asset class, VC is much less appealing than it was before. It's fun to see articles like this one popping up more frequently now that the market has shifted, which amount to a "back to basics" entrepreneurship push. In contrast, the last ten years saw tons of articles pushing founders to raise as much as possible as fast as possible.