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by batgaijin 4792 days ago
Because the kids that are smart enough to do the next big thing are most likely smart enough to avoid VCs.
1 comments

That doesn't sound like a compelling reason. If that's true now, that was at least as true before when the terms tended to be even worse for entrepreneurs. What's changed recently?
I don't want to agree but I do. If you had a job out of college and didn't squander your money (as we are assuming the existence of intelligence) bootstrapping a good idea together is very cheap. If they have been at it and the idea is good and solves critical mass problems and other start-up problems within it why should he/she/they go to a VC?

The current stage: VC's come in, or, like to come in when the startup appears to not even need them. If it is already growing, adding users and all thats needed to make that grow exponential is throwing cash at it they love to come in.

It costs almost nothing to run a company in the cloud and the software infrastructure is so productive that you can realistically bootstrap yourself.
That doesn't pay for development. Even if you have a non-technical cofounder who can pitch in for the development when necessary, you're going to hit a point where it's not enough. And it's not so easy to sell people on joining your company for equity when salaries are so high at large companies.
Uh... the next big ideas aren't going to be the first thing out the door. If they are smart they would create something for passive income with low maintainability while working on the real product.

There is a meme where running a startup is like gambling where the only option is going all in, both for participating in the startup and for the ideas they execute. Quit huffing the glue, and pass the glue.

Uh...you clearly have never worked at a startup with a severe need for more developers. And I'm not talking about the next Instagram. There are legitimate needs for more developers in many startups that are working on real problems.

If you can accelerate the growth of your business by taking VC money and hiring more people, why wouldn't you? Contrary to your first statement, there are plenty of startups in markets that are currently in "landgrab" mode.

If you can accelerate the growth of your business by taking VC money and hiring more people, why wouldn't you?

Brooks' Law, for one thing. I if I was in the situation you describe, I would try more to use the money to buy time, not so much people.