Online Business Models
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Online Business Models
Web-Based Business Strategies and Monetization Models
Curated by Robin Good
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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/ 



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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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What Disrupts Traditional Venture Capital? Seven Forces at Work

What Disrupts Traditional Venture Capital? Seven Forces at Work | Online Business Models | Scoop.it

Robin Good: Is traditional venture capital being disrupted, shifted and slowly modified by new forces? 


It looks like so, at least according to Semil Shah writes on Techcrunch, who writes: "...these forces combined, and each individually in their own way, have altered the landscape for traditional venture capital in software.


It is on average significantly more difficult to for traditional firms to find early-stage opportunities because there is more competition for those investments, and once a company does breakout and require more institutional funding, the prices for those rounds may not look like they have in the past."


The seven key forces at work are:


1) Amazon and its coud infrastructure


2) Angel Investors


3) AngelList


4) Kickstarter and crowdfunding


5) Y Combinator


6) “New” Venture Capital


7) Secondary markets


To find out more about each one and why they are disrupting traditional venture capital, please read the full article here: http://techcrunch.com/2012/04/28/the-seven-forces-disrupting-venture-capital/ 

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