Stop Looking for a Cofounder

Re:Stop Looking for a Cofounder by rcarrigan87 on Friday August 14, 2015 @03:45PM (#10062437)

There is truly a place for VCs and yes some businesses definitely need that kind of funding. But right now it seems VC is so available things are getting funded that will never be able to hit that 10x mark.

So businesses that could have been great bootstrap businesses will grow too fast with too high a burn rate and flame out at a series A or B crunch.

Meanwhile, if the business could have taken it slower they could have built something really valuable for themselves.

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Re:Stop Looking for a Cofounder by 7Figures2Commas on Friday August 14, 2015 @04:46PM (#10062820)

> So businesses that could have been great bootstrap businesses will grow too fast with too high a burn rate and flame out at a series A or B crunch.

Smart, patient entrepreneurs can take advantage of this.

Let angel and VC-backed companies validate markets, and pursue the markets they vacate after the broader crunch occurs.

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Re:Stop Looking for a Cofounder by Douceur on Saturday August 15, 2015 @06:49AM (#10065017)

That's based on the assumption that the crunch will happen though, and even if those companies flop, I think it's quite important to analyse exactly where they went wrong rather than put them down as just another startup that couldn't scale properly. If you're a bootstrapping startup hoping to enter the same market, this is crucial as you can at least try and avoid those mistakes - who's to say that you won't crash and burn too?

(This is more like advice to myself actually as I'm currently in a dilemma between that "wait" that you've just described and the intense worry of not getting first-mover advantage through that waiting)

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Re:Stop Looking for a Cofounder by czbond on Friday August 14, 2015 @11:29PM (#10064202)

You sir, are a smart man. And the only other person I've ever heard to suggest that besides myself (not tooting horn, just honest that no-one thinks that way).

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Re:Stop Looking for a Cofounder by afarrell on Friday August 14, 2015 @04:05PM (#10062580)

This is a way that fixing income inequality would help certain entrepreneurs. If more money can come from customers (poor/middle class/small business) rather than investors, then early revenue will be more attainable than early fundraising.

Decentralizing economic power would shift our economy away from capital-intensive moonshots and toward consumer products though.

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Re:Stop Looking for a Cofounder by nitrogen on Saturday August 15, 2015 @02:55AM (#10064580)

Decentralizing economic power would shift our economy away from capital-intensive moonshots and toward consumer products though.

This was originally solved by selling stock in a venture to the public.

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