Posts Tagged ‘valuation’

20May

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.

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