Re:Why This AdTech Startup Turned Down Seed Funding
by ChuckMcM on Friday March 21, 2014 @07:37PM
(#7445705)
"“Whenever you bootstrap a business revenue becomes that much more important,” says Sherman. “You become very business model focused, very sensitive to cost structures and it really does force you into a kind of diligence with regards to financial performance and managing your costs.”"
That is the key, staying focused. Seed or no seed round it doesn't matter, if you raise too much it is very common to lose focus. I once explained it so someone that its like going into the grocery store with a limited amount of money to buy enough groceries for the week, and going into a grocery with enough money to buy everything in the store. The first person gets in, gets what they need, optimizes for cost effectiveness and gets out. The other person wanders the aisles imagining all of the different meals they could make, without actually deciding on a single meal to make.
That is the key, staying focused. Seed or no seed round it doesn't matter, if you raise too much it is very common to lose focus. I once explained it so someone that its like going into the grocery store with a limited amount of money to buy enough groceries for the week, and going into a grocery with enough money to buy everything in the store. The first person gets in, gets what they need, optimizes for cost effectiveness and gets out. The other person wanders the aisles imagining all of the different meals they could make, without actually deciding on a single meal to make.