|
|
|
|
|
|
by gigamon
6719 days ago
|
|
|
I never said that we don't take VC money. I just said that we take VC money when all we need is money. Which by way is exactly what these gentlemen did? They didn't treat VC money as R&D money but instead they treat them as working capital. They took VC money when they have paying customers and a working business model and it was time to grow the company. The point that I am trying to make in my own writing (http://www.startupforless.com) is that entrepreneurs should concentrate on building their company with their own money FIRST and when they have a ready product, they can CHOOSE. On the other hand, there is nothing wrong with the YC model which is to take money early. But YC is an exception, not the rule. And YC money is clearly smart money. But there are a whole bunch of us who doesn't fit the YC model. |
|
|
Paypal had no idea what their business model was going to be when they took VC (they tried to fight off ebay sellers to begin with), their idea changed every week. They actually raised money so they could buy users (literally, they gave users money if they signed up).
"entrepreneurs should concentrate on building their company with their own money FIRST"
it's precisely because this isn't an option for young founders out of college that something like YC exists. we have no money of our own in the first place so taking external investment is our only option.