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Typical, a VC telling you not to worry about making money. The funny thing is that VCs don't care if a business makes money, only if other VCs will pour million
by orthecreedence 13y ago
Typical, a VC telling you not to worry about making money. The funny thing is that VCs don't care if a business makes money, only if other VCs will pour millions of dollars into it. A company with a real business model is less valuable to them because it eventually won't need further investment, and more importantly, won't need a tech giant to buy it. Most SV companies are just huge (legal) pump and dump schemes. If a company is capable of standing on its own feet without perpetually breastfeeding off investors, then the chances of an exit go down, and the chances of an investor seeing his/her money again in the short term are greatly reduced.
I think business model, strategy, and product are all equally important. You can make a lot of money by making an awesome product and getting a large exit without ever seeing a cent of revenue, but to me sustainable growth based on a real business model is much more rewarding. Maybe I'm just old fashioned, but the more abstract "value" is, the closer your economy comes to crashing as you're essentially creating value out of nothing.
- fredwilson 13y agoas the VC you are ascribing that to, let me correct you. i care a lot about making money. i just think there is a time and place for everything. you can get the "make money" stage too quickly and it hurts more than helps.