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ugh Maybe...maybe not. Sometimes capitalization is what your business really needs. Sometimes it isn't. I can provide a whole list of "web businesses" that boo

by enjo 14y ago

ugh Maybe...maybe not. Sometimes capitalization is what your business really needs. Sometimes it isn't. I can provide a whole list of "web businesses" that bootstrapped to profitability, but I can come up with an equally impressive list of companies took really significant capital. I can certainly find businesses that would have not succeeded without the capital to sustain them through their early years (I experienced that first hand) ahead of their ultimate success. Smart entrepreneurs know how to be strategic with their fundraising. They know when to take money, and (just as importantly) when not to. They know that at key moments a capital infusion can propel a company to big growth. They know that at the wrong moment money can be the distraction that keeps them from executing. I have a huge issue with your post. You're wrong. Experience has shown me that funding can be a huge asset, except when it's not. It's what makes entrepreneurship so incredibly difficult. Funding, and the way you pursue it, are really tough to choices you have to make. After which you have to live with the consequences. To reduce it to "In life there is a right way to do things..." shows a real lack of understanding of that challenge.

davidkatz 14y ago
Second this. Bootstrapping is great, and it's even underrated. Most people raise too much too early, and it ends up hurting them. In the end VC capital is a tool though, and you can use it well. One position from which raising money might be a good idea is when you have a product that is already scaling and shows strong product/market fit, and you know (know, not think) that going 10x on spending is going to let you grow a lot faster.
timmm 14y ago
Cool you could provide a list of exceptions to the rule. Aquisitions, IPO, Unsustainable Co's., and companies that fund themselves through continuous investments are exceptions to the rule. I don't get why web business people want to change the way business had been done for all of history. You make a product, you sell it, you use that money to grow. Don't dilute that process, and if any key part of that process is being omitted you should be very skeptical.

by enjo 14y ago

davidkatz 14y ago

Second this. Bootstrapping is great, and it's even underrated. Most people raise too much too early, and it ends up hurting them. In the end VC capital is a tool though, and you can use it well. One position from which raising money might be a good idea is when you have a product that is already scaling and shows strong product/market fit, and you know (know, not think) that going 10x on spending is going to let you grow a lot faster.

timmm 14y ago

Cool you could provide a list of exceptions to the rule. Aquisitions, IPO, Unsustainable Co's., and companies that fund themselves through continuous investments are exceptions to the rule. I don't get why web business people want to change the way business had been done for all of history. You make a product, you sell it, you use that money to grow. Don't dilute that process, and if any key part of that process is being omitted you should be very skeptical.