Comments on: Who Needs VCs? Seattle Entrepreneurs Say Bootstrapping Is the Way To Go (Part 1) http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/ Business + Technology in the Exponential Economy Sat, 21 Nov 2009 22:30:41 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Visitor http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/comment-page-1/#comment-46721 Visitor Wed, 18 Feb 2009 15:03:56 +0000 http://www.xconomy.com/?p=6540#comment-46721 It's too bad some people can't see beyond their own insecurities and deficiencies to actually hear the message objectively. Maybe thats why *some* people will always be working for one of us, instead of the other way around. <a href="http://www.phallosan.ro/" rel="nofollow">marire penis</a> It’s too bad some people can’t see beyond their own insecurities and deficiencies to actually hear the message objectively. Maybe thats why *some* people will always be working for one of us, instead of the other way around.
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]]> By: Krassen Dimitrov http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/comment-page-1/#comment-41709 Krassen Dimitrov Tue, 02 Dec 2008 23:55:15 +0000 http://www.xconomy.com/?p=6540#comment-41709 4) If your VCs are hurting the business, expose them to their Limited Partners. 4) If your VCs are hurting the business, expose them to their Limited Partners.

]]> By: Tony Wright http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/comment-page-1/#comment-41683 Tony Wright Tue, 02 Dec 2008 16:39:51 +0000 http://www.xconomy.com/?p=6540#comment-41683 Great post! I'm not sure if we should keep calling it VC... I know at least one company in this post that's taken more in an angel round than we did in our tiny Series A. Between Hillel and Robot Co-Op, it seems to be that the biggest danger of VC funding is expectations (both yours and those of your investors) and the lack of discipline that a pile of money can engender (i.e. hiring a new person for every new bit of work that pops up rather than keeping lean). VC is great if you think there is a BIG opportunity. But the management team decides how fast to move towards that opportunity. The simple solution is to: 1) Get a VC that is on board with a growth philosophy that isn't insane (this isn't hard-- I don't know why people think VCs are constantly screaming, "INCREASE MARKETING SPEND! INCREASE HEADCOUNT!". 2) Have the discipline to treat your bank account like it's smaller than it is. Keep your team small. 3) Focus on your product until it's close to as good as you can make it. Then focus on marketing/sales efforts that are measurable and sustainable. Great post!

I’m not sure if we should keep calling it VC… I know at least one company in this post that’s taken more in an angel round than we did in our tiny Series A.

Between Hillel and Robot Co-Op, it seems to be that the biggest danger of VC funding is expectations (both yours and those of your investors) and the lack of discipline that a pile of money can engender (i.e. hiring a new person for every new bit of work that pops up rather than keeping lean).

VC is great if you think there is a BIG opportunity. But the management team decides how fast to move towards that opportunity. The simple solution is to:

1) Get a VC that is on board with a growth philosophy that isn’t insane (this isn’t hard– I don’t know why people think VCs are constantly screaming, “INCREASE MARKETING SPEND! INCREASE HEADCOUNT!”.

2) Have the discipline to treat your bank account like it’s smaller than it is. Keep your team small.

3) Focus on your product until it’s close to as good as you can make it. Then focus on marketing/sales efforts that are measurable and sustainable.

]]> By: Shafqat http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/comment-page-1/#comment-41624 Shafqat Mon, 01 Dec 2008 23:40:10 +0000 http://www.xconomy.com/?p=6540#comment-41624 I completely agree that bootstrapped is the way to go. Starting and running a web-based business has never been cheaper, and the economics of VC funding just don't make sense in most cases (I say 'most' because there are certainly exceptions). At NewsCred, we passed on VC funding and are about to close our angel round. We've raised as little as possible so that we keep control of the company, ensure we remain agile and creative, and also guarantee that most of the pie is split amongst founders and employees. I wouldn't want it any other way. I also think this trend of moving away from VC funding will continue and will eventually force VCs to rethink their models and innovate their funding strategies. Shafqat CEO NewsCred I completely agree that bootstrapped is the way to go. Starting and running a web-based business has never been cheaper, and the economics of VC funding just don’t make sense in most cases (I say ‘most’ because there are certainly exceptions).

At NewsCred, we passed on VC funding and are about to close our angel round. We’ve raised as little as possible so that we keep control of the company, ensure we remain agile and creative, and also guarantee that most of the pie is split amongst founders and employees. I wouldn’t want it any other way.

I also think this trend of moving away from VC funding will continue and will eventually force VCs to rethink their models and innovate their funding strategies.

Shafqat
CEO NewsCred

]]> By: Hmmm http://www.xconomy.com/seattle/2008/12/01/who-needs-vcs-seattle-entrepreneurs-say-bootstrapping-is-the-way-to-go-part-1/comment-page-1/#comment-41604 Hmmm Mon, 01 Dec 2008 16:53:35 +0000 http://www.xconomy.com/?p=6540#comment-41604 So.....what isn't talked about is that VCs won't fund any of these anyway! So…..what isn’t talked about is that VCs won’t fund any of these anyway!

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