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It's sad to read stories like this. But I have to wonder... if the concept is profitable what keeps it from being executed without 2 million dollars in investor
by jqm 12y ago
It's sad to read stories like this. But I have to wonder... if the concept is profitable what keeps it from being executed without 2 million dollars in investor money? So maybe you stay smaller... who cares? For you, it is about what you are making, not how big the company is. How much does it really cost to set up a database driven website? Hmmm?
Now, I realize this doesn't apply if the end game is a high dollar exit, but if you can make a decent living with your application/web site ("startup" and "founder" are overused terms in my opinion) who cares?
If you can't make a profit long term, then maybe you your idea doesn't deserve to live. Simply passing the bomb on to the next set of suckers be they the public at IPO's, or acquires, or VC investors hardly seems like the right thing to do (although no doubt it is done all the time... sometimes with incredible profits).
There is life outside the VC world. If it's a good idea and profitable and you love it....stick with it. If you are looking for a billion dollar exit... that's another thing entirely and it's time to move on to the next idea.
- semiel 12y agoI generally agree with this perspective, but a two-sided marketplace is one of the business models that really does need to grow fast. No one would install the Uber app if it didn't have any drivers, and no one would apply to be a driver if there were no riders.
- jqm 12y agoOK. That's a very valid explanation in this case. Kind of like all the ebay replacements that never seem to get anywhere in spite of how awful ebay is.
- jakejake 12y agoIt's a valid point. I think that certain types of ideas do require capital to start. Uber, for example, probably needed a lot of capital to get their infrastructure going. If you have web-based startup with minimal expenses then investment capital may not be necessary until you are ready to make a big move. Here on HN it is overly glorified to read "company gets 1.2 million investment." It puts things in perspective to think "company takes out 1.2 million dollar loan and now has 10 months to figure out how to stay in business." But that's the reality of going the venture capital route before your company has any income.