Most startups need some initial capital, but the "one and done" approach works better than chasing VC: raise a small round from friends or angels, hit profitability fast, and only talk to VCs later if growth is clear. Early profitability gives you optionality and keeps founders from getting wiped out by bad liquidation preferences.
Chapters
There's a lot of what I've started to call bootstrap porn out there. What? Where people are bashing VCs because we're coming into this slump, the funding slump, and bootstrapping's becoming more fashionable, and it's becoming more fashionable to say VCs are all wrong. It's the terrible way to do it. You've gotta bootstrap. But I think as with all these things, it isn't black and white. Most people that bootstrap have to start with some kind of funding. Yeah. You're very lucky to start a business with no funding at all. So I'm a big believer in one and done. You go and you raise a small round of capital somehow. Maybe you borrow from your parents if you're lucky. Maybe you go and raise angels, friends, and then you get to profitability as soon as possible. Default alive, as we all like to talk about. And then you've got optionality. Then if you've found something that is absolutely skyrocketing, sure, go ahead and talk to VCs. Maybe they will want to back you and maybe you can get friendly terms where they don't have a massive liquidity preference that can take you out of the game. Even when you've got a $100 million company, you get fired and end up with nothing. But I think getting to that profitability point is so important.
