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Web-Based Business Strategies and Monetization Models
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Why Bootstrapping Is a Better Choice for Value-Driven Startups

Why Bootstrapping Is a Better Choice for Value-Driven Startups | Online Business Models | Scoop.it

"In the age of startups and micro-enterprises, the first thing you hear about, when it comes to creating a new company, service or digital product is a whole new glossary of words starting ranging from venture capital to angel investors."

Robin Good's insight:



Does a startup really need to raise venture capital?


I guess it depends on what its goals and values really are.


If you are after the magic opportunity to do what happens to one in a thousand startups when it is bought up by a giant company like Google, then you shouldn't hesitate to party down with the VCs. 


But if you are after creating something that has personal value for you beyond the money that it will make, if you want to keep steering the direction of your service and if you don't like to come down to many compromises, then be very careful about jumping on the VC funding train.


Here my own thoughts and ideas on why it is so important, for those in this second group, to avoid the funding dream and to go after a bootstrapping (and possibly crowdfunded) approach. 



Full article: http://www.masternewmedia.org/bootstrapping-startups-guide/ 



Martin (Marty) Smith's curator insight, April 20, 2014 8:54 PM

I changed the title here because the longer you can bootstrap your startup the less you give up and the more you get for your hard work.

Brenda Collins's curator insight, May 8, 2014 3:37 PM

If you can boot strap your venture then do so before talking to investors. Gather around you people who have no vested interest in your company except your success and will speak honestly to you. 

OneView Tunis's curator insight, June 15, 2014 4:12 AM

Profitabilité vs. service rendu. Tout se décide dès le début

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Getting Funded with Venture Capital: Why It May Not Be Such a Good Idea

Getting Funded with Venture Capital: Why It May Not Be Such a Good Idea | Online Business Models | Scoop.it

"You are more than three times as likely to crash your startup as you are to ring the NASDAQ opening bell."

Robin Good's insight:



Rachel Chalmers illustrates five key reasons why it may not be such a great idea to get your startup funded by venture capital.


These include: 


  1. Not getting a fair hearing

  2. Rising capital means losing the YOU and giving in to financial interests as the primary drivers

  3. The majority of VC funded companies will not ever generate any venture success

  4. You are not going to have full control anymore

  5. Venture math is a harsh mistress 


Key advice: VCs are optimizing for a very specific outcome (making a large as possible profit fast). Share that alignment, or don’t take their money.


Chances to convert a startup into a VC-funded success, are not very high, if you look at the numbers. But worse than that, is what you have to endure and give up to achieve that goal.


Useful. 7/10



Full article: http://modelviewculture.com/pieces/five-reasons-not-to-raise-venture-capital 

Reading time:  7 mins.


See also: http://www.masternewmedia.org/bootstrapping-startups-guide/ 







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