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I'm arguing that generally founders don't have a choice; Unless you have an unbelievably good product, and know the right people, the likelihood that you will g

by ValG 15y ago

I'm arguing that generally founders don't have a choice; Unless you have an unbelievably good product, and know the right people, the likelihood that you will get your start-up funded is unbelievably small. The start-up community is relatively small, the number of people in that community who are investors is even smaller; the pool of founders is very large. Many, if not most, founders know very little about investors and who they can reach out to. So their perception is that, if you need funding you take what you can get. Especially when you hear NO after NO... Beggars can't be choosers. Is it ideal, of course not, but it is what it is...

gruseom 15y ago
Well, ok I guess, if that's the world you live in. I observe things changing quite a bit more than that, but admittedly at different rates in different places. You know what, though? I'd rather work on making that unbelievably good product you mention than figure out how to make myself seem something I'm not. Lots of people are succeeding. Not all of them take funding. Besides, if you make something great that people want, your chance of getting funded is not so small, because you can apply to YC, who are looking for people just like that and have none of the prejudices you describe.
- ValG 15y ago
  Looks like we finally found something we can agree on ;) Making a great product that people want is the key, it's always been the key and always will be the key. Don't forget though, YC has gotten alot more press in recent years (e.g. this http://news.cnet.com/8301-33617_3-57406737-276/y-combinator-disneyland-for-investors/ http://news.cnet.com/8301-33617_3-57406737-276/y-combinator-...), and one might argue a little more competitive because of it. That might increase the quality of what's coming out of YC, but it also means, as hard as the may try, they are always going to miss out on some potentially good teams/ideas/products.
tptacek 15y ago
This is frustrating. It is indeed very hard to get a startup funded in 2012. But for first-time investors, getting funded has never had less to do with connections and dress code than it does now. That's what 'gruseom is saying. You're also missing his larger point. You seem to think that not getting funded is the worst thing that can happen to a small business. No. Getting funded by the wrong people can be way worse. I think first-time entrepreneurs on HN need to get this fact through their head more than perhaps any other: it is worse to waste 1-2 years of your life on a DOA startup than it is to fail fast and get on to your next endeavor. You will not get those years back. It can be even worse than that: you can be 9-12 months into your DOA startup with your pathological dress-code-attentive investors, have a much better idea and a team capable of executing on it and not be able to pursue it because of your legal obligations to the investors. Taking investors is in some ways worse than taking a full-time job. The law recognizes the real power dynamics in employer/employee relationships and, for instance, refuses to enforce noncompete contracts. The law sometimes views the relationship between founders and investors in exactly the opposite way. Take on investors, by all means, if that's what's best for your business. But watch the heck out for psychos.

by ValG 15y ago

gruseom 15y ago

Well, ok I guess, if that's the world you live in. I observe things changing quite a bit more than that, but admittedly at different rates in different places. You know what, though? I'd rather work on making that unbelievably good product you mention than figure out how to make myself seem something I'm not. Lots of people are succeeding. Not all of them take funding. Besides, if you make something great that people want, your chance of getting funded is not so small, because you can apply to YC, who are looking for people just like that and have none of the prejudices you describe.

ValG 15y ago
Looks like we finally found something we can agree on ;) Making a great product that people want is the key, it's always been the key and always will be the key. Don't forget though, YC has gotten alot more press in recent years (e.g. this http://news.cnet.com/8301-33617_3-57406737-276/y-combinator-disneyland-for-investors/ http://news.cnet.com/8301-33617_3-57406737-276/y-combinator-...), and one might argue a little more competitive because of it. That might increase the quality of what's coming out of YC, but it also means, as hard as the may try, they are always going to miss out on some potentially good teams/ideas/products.

tptacek 15y ago

This is frustrating. It is indeed very hard to get a startup funded in 2012. But for first-time investors, getting funded has never had less to do with connections and dress code than it does now. That's what 'gruseom is saying. You're also missing his larger point. You seem to think that not getting funded is the worst thing that can happen to a small business. No. Getting funded by the wrong people can be way worse. I think first-time entrepreneurs on HN need to get this fact through their head more than perhaps any other: it is worse to waste 1-2 years of your life on a DOA startup than it is to fail fast and get on to your next endeavor. You will not get those years back. It can be even worse than that: you can be 9-12 months into your DOA startup with your pathological dress-code-attentive investors, have a much better idea and a team capable of executing on it and not be able to pursue it because of your legal obligations to the investors. Taking investors is in some ways worse than taking a full-time job. The law recognizes the real power dynamics in employer/employee relationships and, for instance, refuses to enforce noncompete contracts. The law sometimes views the relationship between founders and investors in exactly the opposite way. Take on investors, by all means, if that's what's best for your business. But watch the heck out for psychos.