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This inclination to "raise funds" is so foreign to me. VCs may tell you all the magic they can do for you, but at the end of the day you're trading ownership in
by itsoktocry 3y ago
This inclination to "raise funds" is so foreign to me. VCs may tell you all the magic they can do for you, but at the end of the day you're trading ownership in your company for money (that you can't get elsewhere).
You are running a profitable business, why play that game?
- rfrey 3y agoTo go faster. You trade part of your company (and your freedom) for time. Maybe as a profitable startup in one part of the US, for example, you could use reinvested earnings to spread into the rest of the US in 5 years, then Europe in another 5 years. Perhaps with VC funding you could do the same in 3 years rather than 10. Not my first choice, but neither is it irrational.
- _akhe 3y agoMy partner wants nothing to do with a VC or even a loan - basically because what you're saying here. The other side to it, as rfrey said, is it would enable a hyper growth mode and let us make moves earlier. But stable growth mode is working fine, and overall there's not a huge reason to take out a loan or raise money, it doesn't feel like we're racing against a clock on some trend or any other reason to rush things.
- Eridrus 3y agoIt's important to be aligned with your partners before you start because people rarely change what they want. Many people are happy running a small business without much pressure.