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If you've committed to an ideological position that bootstrapping is the only valid way to start a business, you have nothing useful to offer on the topic of ho

If you've committed to an ideological position that bootstrapping is the only valid way to start a business, you have nothing useful to offer on the topic of how to raise money well and what to look out for. It's the same way that an anarchist cannot make sensible statements on tax policy. "Taxation is theft" isn't an argument for or against eliminating the mortgage interest deduction, it's just an irrelevant distraction.

shin_lao 13y ago
There's a slider between 100% bootstrapped and 100% invested, and using that slider is what gives you leverage in tough times.
- ryanbrunner 13y ago
  In practice there's often not. Perhaps early on, but heavily VC funded start-ups are likely going to have a board that's somewhat hostile to slow, careful growth with a focus on profitability.
  - shin_lao 13y ago
    Probably a reason why VC funded companies have a higher probability of failing...
ronaldx 13y ago
An anarchist could have a novel and useful insight into taxation, despite the straw man you set up. It's common that deciding to reject the status quo requires strong and considered reasoning.
7Figures2Commas 13y ago
I fail to see how you could read my comment and draw the conclusion that I am committed to an ideological position that bootstrapping is the only valid way to start a business because I implied no such thing. Many businesses require capital, and it's worth noting that equity isn't the only means by which it can be raised. This said, money isn't free (except in certain financial centers of course) and the people and institutions providing it generally aren't doing so out of the goodness of their hearts. My comment simply points that out. Want something useful? How's this: it's easier to raise capital on reasonable/favorable terms when you don't need it. In other words, put yourself in a position where you're raising capital to grow, make bigger investments earlier, etc., not to make next month's payroll. I always figured this was common sense, but in Silicon Valley, more than a few people seem to believe that the way to build a business is to return to the funding trough every time you've exhausted your last round of funding.

shin_lao 13y ago

There's a slider between 100% bootstrapped and 100% invested, and using that slider is what gives you leverage in tough times.

ryanbrunner 13y ago
In practice there's often not. Perhaps early on, but heavily VC funded start-ups are likely going to have a board that's somewhat hostile to slow, careful growth with a focus on profitability.
- shin_lao 13y ago
  Probably a reason why VC funded companies have a higher probability of failing...

ronaldx 13y ago

An anarchist could have a novel and useful insight into taxation, despite the straw man you set up. It's common that deciding to reject the status quo requires strong and considered reasoning.

7Figures2Commas 13y ago

I fail to see how you could read my comment and draw the conclusion that I am committed to an ideological position that bootstrapping is the only valid way to start a business because I implied no such thing. Many businesses require capital, and it's worth noting that equity isn't the only means by which it can be raised. This said, money isn't free (except in certain financial centers of course) and the people and institutions providing it generally aren't doing so out of the goodness of their hearts. My comment simply points that out. Want something useful? How's this: it's easier to raise capital on reasonable/favorable terms when you don't need it. In other words, put yourself in a position where you're raising capital to grow, make bigger investments earlier, etc., not to make next month's payroll. I always figured this was common sense, but in Silicon Valley, more than a few people seem to believe that the way to build a business is to return to the funding trough every time you've exhausted your last round of funding.