Re:Why to Start a Startup in a Bad Economy (2008)
by gnicholas on Wednesday January 18, 2023 @03:46PM
(#34432842)
That's an interesting question. If you are dead set on being frugal and don't need help from your investors (in the form of introductions, etc.), then you could draw a line in the sand and refuse to cross it.
If things don't go well, it would probably be hard to raise money for a future startup, due to the reputational damage of not having followed the VC playbook.
If things go fine, the VCs would probably say you could have grown even faster by spending faster. And what's considered a 'fine' outcome for you (selling for $15M with 1/3 for you) is not considered 'fine' for a VC whose model requires bigger wins — even if they take much longer.
If things don't go well, it would probably be hard to raise money for a future startup, due to the reputational damage of not having followed the VC playbook.
If things go fine, the VCs would probably say you could have grown even faster by spending faster. And what's considered a 'fine' outcome for you (selling for $15M with 1/3 for you) is not considered 'fine' for a VC whose model requires bigger wins — even if they take much longer.