Getting a VC usually sounds like a good idea and is definitely the myth that we were all told that without a VC you cannot succeed.
This is actually not true. If you have clients and your having enough money to pay yourselves a little bit, ride that wave. Focus on growing your business with more satisfied clients and building a brand. VC money can be useful if you see a small but very lucrative opening that will get you to get 10 to 100 folds more return and your clients cannot advance you money for that.
If you’re lean enough and running a tight ship, building only features that have great value for the customers; have great channels to grow your customer base; and are financially sustainable; then why a VC?
And remember, the longer you run your company without external funding, the better the return is later for you and your friends, whether you decide to sell, IPO, or get VC. You will always own more of your company.
But if you’re close to bankruptcy, because of your burn rate , and you’re still growing, then maybe start raising money when you have 6 months or so worth of runway left.
PS: I do have some doubts about the 2 startups though. If you’re running 2 at the same time, then you’re not in any of them 100%... And that’s not in the best interest of your startups
Apologies, I should have been more clear. I have two companies, however one is the main focus (the enterprise one) whereas the other c-corp is a mobile gaming platform I do in my free-time. You are right though, there will surely come a time where hard decisions must be made.
This is actually not true. If you have clients and your having enough money to pay yourselves a little bit, ride that wave. Focus on growing your business with more satisfied clients and building a brand. VC money can be useful if you see a small but very lucrative opening that will get you to get 10 to 100 folds more return and your clients cannot advance you money for that. If you’re lean enough and running a tight ship, building only features that have great value for the customers; have great channels to grow your customer base; and are financially sustainable; then why a VC?
And remember, the longer you run your company without external funding, the better the return is later for you and your friends, whether you decide to sell, IPO, or get VC. You will always own more of your company.
But if you’re close to bankruptcy, because of your burn rate , and you’re still growing, then maybe start raising money when you have 6 months or so worth of runway left.
PS: I do have some doubts about the 2 startups though. If you’re running 2 at the same time, then you’re not in any of them 100%... And that’s not in the best interest of your startups