RSS Feed

The Joel on Software Discussion Group (CLOSED)

Almost all books in entrepreneurship and startups spend a lot of time on how to "pitch VCs".

Case in point:
The Art of Start
http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Daps&field-keywords=The+art+of+start&x=0&y=0

A Good Hard Kick in the Ass
http://www.amazon.com/Good-Hard-Kick-Ass-Entrepreneurs/dp/0609609505/ref=sr_1_1?ie=UTF8&s=books&qid=1231939980&sr=8-1


Can one not Startup without the help of VC funding? Bootstrapping for self-revenues?

It depends who you ask.

I would say it is perfectly possible to launch a successful company by bootstrapping and many people around here would probably agree.

As a community we are somewhat biased against VCs. However, there are cases where taking VC money can be the best way forward.

Also, VCs are not just about the money. They can also offer excellent contacts and expertise, as well as partnerships with their other investments.

Depends on what you have to make each month to stay afloat at home.  If I quit my job today I have to bring home $10k next month to keep the kids in college the mortgage paid etc.  Were I 22 with a laptop, a bike, and a roommate that number would be much smaller.

So I would need VC or significant savings to start a business.  Your situation might be different. 

Joel started and grew Fog Creek without any outside investment, and he remains privately owned today.  If you ask me that is the best situation to be in.  He gets to decide what's important because he's writing the checks.

Absolutely! Google "bootstrapping" -- see ya in a few weeks :)

That said, some industries are easier to bootstrap than others. Software/web is typically easy -- startup costs are low. Manufacturing, anything where you need to maintain a supply chain, an inventory, a bit tougher.

Absolutely possible to start up without VC funding. Heard of "Fog Creek"? :-)

I started my consulting business in 2000 using a credit card for initial funding.

I started my software business in 2008 using savings for initial funding.

I think it depends on the market.  If the market is established then more capital is needed.  The less established a market is (assuming it is viable in the first place) the less likely you will need capital.

For example Google and Microsoft both didn't face the massive level of competition you would face today trying to compete in their industries.  They were able to take advantage of being their earlier than most others.

Another important consideration is what kind of product you're developing. If you're working on something large and innovative, which needs months and years to be developed and tested (say, a groundbreaking Web-search software) you can't really do much without external funding. On the other hand, if there is a clear monetization path (e.g. online bookstore), bootstrapping is a valid option.

Then why is there such an obsession about VC funding?

I almost seems like VC funding is not a means to an end (starting a company), but an end in itself.

Who's obsessed with VC funding?