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This isn't always true. Tech s tartups are more and more the core form of the business world. Most businesses that are successful in North America in any indus
by j45 2y ago
This isn't always true. Tech s
tartups are more and more the core form of the business world.
Most businesses that are successful in North America in any industry started self-funded.
The cost of building software has fallen 10-100x compared to 10-20 years ago.
Self-funding can be strategic, especially for experienced founders with industry chops.
Waiting for VC green light might waste time you could spend learning the market. It's good to talk to everyone, get introductions, but keep product learning going.
Don't underestimate dilution. Self-funded or lightly-funded SaaS can exit for impressive multiples, sometimes matching heavily diluted unicorns. Billion dollar funded exits are for the already rich, not the founders. Choosing between that or a 50-200M exit where its 70-90% the founder(s) is pretty staggering.
VC cash doesn't guarantee success or hustle. It's pressure, sure, but timing and execution are still king.
Self-Funding or smaller rounds early to prove scale can lead to sweeter terms later.
Investor rejection isn't a "no" to building. It's a chance to fine-tune and find the right partners.
B2B consulting can be paid market research if you play it smart.
In B2B software, strong demand might turn clients into both customers and investors.
YC's approach is solid - they don't push startups to fundraise if the timing's not right. There's good investors aligned around that (and them) as well as other ways.
The key? Balance. VC or self-funded, focus on building something valuable. Don't chug the VC Kool-Aid, but don't be overly sober either. Pick the path that fits your goals, experience, and market opportunity. Sometimes, the untapped demand is there with or without you - might as well go after it.
Smaller investment funds coupled with many successful founders coaching (actual help in doing) are worth looking into. One I came across recently was TinySeed. There are others.
If you're still not convinced, check out the VC's silent cousins, private equity firms snapping up self-funded startups to grow themselves.