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I think VCs need to understand that not all startups want to be a billionaire hence they don't need baby sitters and they can take care of themselves.
by stackthat 16y ago
I think VCs need to understand that not all startups want to be a billionaire hence they don't need baby sitters and they can take care of themselves.
- deleted 16y ago[deleted]
- pclark 16y agowhat do you mean?
- timme 16y agoAgreed. I can't help but think that the article has an arrogant undertone to it. There are plenty of startups who do just fine without VC 'support'.
- fredwilson 16y agoi can see how you can take the post in that way. but i didn't mean it that way. i'm just concerned that there isn't as much capital around to fund all of these companies in the follow on rounds
- stackthat 16y agoWhat round? In a small startup you don't have rounds. You are ramen profitable in your first year which is generally not more than $5K-$30K per month (depending on the size) and then you stay alive, you don't get huge or big or massive and generally you don't care. $5-10K per month is good salary for a (co-)founder. These small startups funded by their customers after 3 months to 1 year, after a year if they are not ramen profitable then it's generally end of the game. In the long term it gets bigger and in which case you are already big which means either someone is going to acquire you or you can fund yourself and keep getting bigger and bigger. I understand that some startups need load of money and stuff but many don't.
- imp 16y agoNot everyone can be ramen profitable in their first year. I think his point is that people assume it's easy to get to profitability and end up out of cash when they don't get there right away.
- earle 16y agoCan you name startups launched since 2005 which have > 20M in revenue and haven't taken series a capitalization?