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Yeah, I talked to a startup that had an existing product with a revenue stream, but they were aiming to take like 10m in investment in order to either grow expo
by vcarl 11y ago
Yeah, I talked to a startup that had an existing product with a revenue stream, but they were aiming to take like 10m in investment in order to either grow exponentially or flame out early. That makes zero sense to me, why not bootstrap and build a real company rather than be a piece in somebody else's larger game?
- mpdehaan2 11y agoMore difficult if the startup can't yet support itself and just needs to get over a hump and get to a good growth point, because everybody wants a big exit. It should have bootstrapped before it got to that point, but can't get that money now when it needs it, or it's going to grow to be not-super-huge. That being said, most wouldn't flame out if not for the crazy pressure of using it for explosive growth. There needs to be more "medium size / medium growth business investment" type VCs. I've never met any, but they might exist. $10M doesn't make you flame out, but how fast the VCs want you to spend it can, they only give you money for a year or two so they can get a larger percentage stake later, and that you are moving for an exit versus profitability.