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Pretty cool theory, and I really appreciate how it champions the idea of startups seeing tight budgets as a good thing. Although, the 'One Round Wonder' is kin
by humbleferret 3y ago
Pretty cool theory, and I really appreciate how it champions the idea of startups seeing tight budgets as a good thing.
Although, the 'One Round Wonder' is kind of like the startup world's unicorn – much desired but pretty rare. I mean, what founder would not want to raise once and never need to raise again because their startup is so successful? It's a lovely thought, but as the author points out, it's not exactly what happens in the real world. Even with a popular product and a market blooming like a spring onion, you might still need to raise again or even raise having never raised before.
I also think that bootstrapped businesses versus those startups 'needing' $100K to $5M for a pre-seed round are like different species in the startup ecosystem. Bootstrappers aren't necessarily gunning to be the next headline-grabbing unicorn. They're more like the scrappy alley cats, making the most out of every scrap, which somehow keeps them agile and inventive. Ever notice how some startups after raising get a bit, let's say, 'comfy' after a big early funding round? It's like they swap their running shoes for slippers.
Funding can be a blessing or a curse.