Raising funding is often harder than building a product/business — and much less fun!
Okay, a few days prior to today I was reading the wonderful hacknews and came upon this article. It covers some elements and ideas that helped us find interest in bootstrapping and independent-ness at IndieStartups. I’m quoting a bit here, or if interested the article can be read at OnStartups.
1) Most folks don’t need venture funding in the early stages
2) the odds of first-time entrepreneurs actually raising VC is pretty low.
Oh, and 3) it’s one of the least fun activities an entrepreneur can take. Raising funding is often harder than building a product/business — and much less fun!
…
The simple answer is no, I have not changed my mind on VC. I still don’t think most early-stage entrepreneurs should go out on the venture fund-raising circuit. They should maintain the option of a modest exit. Focus on solving the customer’s problem (not the VC’s problem). My situation with HubSpot was special. I had already done the bootstrap thing (multiple times) and made money. I had above average odds of raising money for HubSpot.
So, why did I raise funding? Because, this time around I wanted to take a shot at the big leagues. Sure, any success (even a modest one) is nice. But a modest success is not going to change my life much at this point. I want to swing hard. It’s not about the money. It’s about the fun and excitement of pursuing a really big idea, working with really smart people and doing what I love. [And, of course, the money won’t hurt either]
And that, my friends, is why I raised $17 million in venture funding.
Once again, full article at OnStartups.
Ali:
May 24th, 2008
7:27 am
How did you do this Venture Funding, I am in the process of finishing my site, which would be up there with all the rest of the web 2.0 ideas.
but i dont have a clue about VC and how to do it and where to go and stuff.
can you help?
Fredrick Page:
November 12th, 2008
10:20 pm
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