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1. Startup Lab (startuplab@mastodon.social)'s status on Sunday, 15-Jul-2018 11:24:40 UTC Startup Lab

   Taking on venture capital means you:

   - Are getting a boss you'll work for, without being able to quit, for the next 5+ years.

   - Can't control your salary, who gets hired/fired, or even you position as CEO.

   - Will be pressured into growing until you can make a 10x return to the investors on sale/IPO, massively increasing your risk. Moderate level of success is incompatible with VC model.

   Consider instead bootstrapping a profitable product/service, and using that to fund your future projects.

   • Logan Dice repeated this.
   • Startup Lab (startuplab@mastodon.social)'s status on Wednesday, 18-Jul-2018 12:45:18 UTC Startup Lab

     in reply to

     More reasons not to take on venture capital:

     - Investors need their returns within 3-5 years, so rushing to sale/IPO becomes more important than building a long-term quality business.

     - You're just getting started and you have no leverage, so you'll get a bad deal.

     - You end up caring about your investors interests more than you care about customers.

     - Raising money is slow, uncertain, and very distracting. It takes months of effort, a time better spent building a great product.

     Logan Dice repeated this.