A couple weeks ago, Joe and I attended the local SD TechCrunch Meetup at Karl Straus in the Sorrento Valley Tech Center, organized by Vipul Bahety of Qualcomm.
It was a refreshing scene, especially when most of tech/biotech events in SD are attended by Boomers. This time, we get to mingle with the Gen X’s and Y’s. We were glad to make connections with some local startups and entrepreneurs that are ready to conquer the world.
Many of the startups we met, were in the midst of seeking VC funding. Actually, all of them that we met were seeking some sort of funding. Which led me to think, do all startups NEED VC funding? Can startups survive without huge investments?
I understand that there are certain types of business that require outside funding, but I believe that a lot of companies really don’t need this large, expensive infrastructure especially if you are in the “service” business. That’s why Joe and I were trying to dig deeper, by asking these “service” type businesses (consultants, software companies) why they HAVE to get VC funding?
I almost feel that often times, these founders want VC money not for the sake of growing their companies, but rather to pay themselves huge salaries!! At the recent TechCrunch Disrupt NYC, panelists, advisors and investors from VC’s and angels, were giving startups blunt advice about seeking seed money. And the overall theme was, we simply wouldn’t just give you money for salary. You have to show us that you are committed to your business 200%, for the long haul and your business is not just another exit strategy.
Make sense right? Which means, you are not just sitting around for 4 years, waiting around for shit to happen, and then hoping to sell your company for millions, when you have merely just begun. Ideas are cheap. It’s about how well we execute them. So stop talking and start working!
So…what have our generation become? Are we proving to Boomers that our generation is nothing but self-absorbed, self-entitled peeps that have no sense of “work” value?
I started my business with only $2500. I am humbled everyday to be able to do what I love and work with other small business owners out there who are working their ass off making their business work for them.
Pick up a copy of Jason Fried’s of 37 Signals REWORK today. Trust me. It’s the best thing you can do for yourself. In there you will find 6 great reasons on why outside money is Plan Z.
And the best take away of the book for me is:
“Don’t be insecure about aiming to be a small business. Anyone who runs a business that’s sustainable and profitable, whether it’s big or small should be proud” – Jason Fried, author of Rework.
