Here comes another delusion. I'm waiting to get funded, then...
Wait all you like, then wait some more. The chances are, you won't get funded. I'm beginning to sound like a pessimist, but honestly I'm not. Anyone who is an entrepreneur, or has ever been one would tell you just how much they'd give to get funded. There is very little one wouldn't do, most of them would do ANYTHING! Most of the times, my eyes light up at the sound of a VC, my mind running through my business model, scale-ability, ROI, projections and on and on. Then I'd meet the VC, listen to the their concerns and move on thinking about how I'd change my model to fit into the vision they've had for my company in the 10 minutes of my interaction with them. Eventually, I end up doing nothing.
Why?
Well, most entrepreneurs, especially the seasoned ones(I would not count myself as one, not yet!) have another name for VCs, Vulture Capitalists. There is a very good reason for this too. Much like the whole myth of entrepreneurship being this amazing journey where in a couple you end up with gold teeth, a house on the beach, a Bentley in the driveway, being the happiest man/woman alive. Getting funded is something similar. Looks like a dream, a dream which takes away your dream. If of course you were building your dream company.
They fund you, they own you. Simple.
Once you are funded, you more often then not go the equity way. A million $ debt doesn't quite have a ring to it. The equity way has you giving up a degree of control to the VC, this 'degree' goes on increasing with the more success you see and the more money you invest. You can't stop getting funded because now the VC is on your board. Slowly, but surely the decisions aren't yours anymore. The company isn't yours anymore. You could still be a face if you're lucky and of course brilliant at what you do, but chances are that's all you'll end up being. Even to remain a face, you need to be very very luck! Take the example of Steve Jobs, you don't need me to elaborate that one, he was just lucky enough to be brought back! Rob Kalin, who founded Etsy. He had the distinct pleasure to be ousted twice!! And of course, one of the recent famous CEOs to be fired, Jakob Lodwick from Vimeo. This, is a common practice. Too common for my liking.
This is why when I meet VCs and listen to what they have to say to me, I listen, then I do nothing, because; I am lazy.
Also, because I would much rather retain control, do things my way, the way I'd enjoy them. Make decision, the wrong ones and learn. Build on my own. And if I fail, if my company fails, it'll be because I made the the wrong decisions for my own company. Not a vulture.
FYI, 3 out of 4 venture backed companies fail. Go ahead, Google it!
So, you could wait to get funded and then let someone else do what they see fit. Or you could stop waiting and build the company you want. Because, waiting won't guarantee that you'll get someone else to make those decisions for you, even if that is what you want.
Wait all you like, then wait some more. The chances are, you won't get funded. I'm beginning to sound like a pessimist, but honestly I'm not. Anyone who is an entrepreneur, or has ever been one would tell you just how much they'd give to get funded. There is very little one wouldn't do, most of them would do ANYTHING! Most of the times, my eyes light up at the sound of a VC, my mind running through my business model, scale-ability, ROI, projections and on and on. Then I'd meet the VC, listen to the their concerns and move on thinking about how I'd change my model to fit into the vision they've had for my company in the 10 minutes of my interaction with them. Eventually, I end up doing nothing.
Why?
Well, most entrepreneurs, especially the seasoned ones(I would not count myself as one, not yet!) have another name for VCs, Vulture Capitalists. There is a very good reason for this too. Much like the whole myth of entrepreneurship being this amazing journey where in a couple you end up with gold teeth, a house on the beach, a Bentley in the driveway, being the happiest man/woman alive. Getting funded is something similar. Looks like a dream, a dream which takes away your dream. If of course you were building your dream company.
They fund you, they own you. Simple.
Once you are funded, you more often then not go the equity way. A million $ debt doesn't quite have a ring to it. The equity way has you giving up a degree of control to the VC, this 'degree' goes on increasing with the more success you see and the more money you invest. You can't stop getting funded because now the VC is on your board. Slowly, but surely the decisions aren't yours anymore. The company isn't yours anymore. You could still be a face if you're lucky and of course brilliant at what you do, but chances are that's all you'll end up being. Even to remain a face, you need to be very very luck! Take the example of Steve Jobs, you don't need me to elaborate that one, he was just lucky enough to be brought back! Rob Kalin, who founded Etsy. He had the distinct pleasure to be ousted twice!! And of course, one of the recent famous CEOs to be fired, Jakob Lodwick from Vimeo. This, is a common practice. Too common for my liking.
This is why when I meet VCs and listen to what they have to say to me, I listen, then I do nothing, because; I am lazy.
Also, because I would much rather retain control, do things my way, the way I'd enjoy them. Make decision, the wrong ones and learn. Build on my own. And if I fail, if my company fails, it'll be because I made the the wrong decisions for my own company. Not a vulture.
FYI, 3 out of 4 venture backed companies fail. Go ahead, Google it!
So, you could wait to get funded and then let someone else do what they see fit. Or you could stop waiting and build the company you want. Because, waiting won't guarantee that you'll get someone else to make those decisions for you, even if that is what you want.
