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"Regardless, there are still good reasons to seek VC investment when profitable." Oh I agree of course. VC will be judging you on future potential; a bank will
by sho 18y ago
"Regardless, there are still good reasons to seek VC investment when profitable."
Oh I agree of course. VC will be judging you on future potential; a bank will be judging on current performance. If you need a million dollars to really scale up, you need the VC. Facebook or Youtube come to mind, they could have never achived what they have without VC.
But if you don't need the huge cash injection, if you just need to incrementally ramp things up slowly, then VC is not your only option; that's all I'm trying to say.
- medianama 18y agoI am not convinced that Facebook needed all the money that they've spent to reach this level. What do they need money for?
- sho 18y agoEarly on they needed money, and a lot of it, for servers. They were highly cashflow negative and realistically only VC or outright acquisition could have paid for it. A case could certainly be made that they took too much money, and I would agree with that, but they did need money from somewhere.