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Why I Would Never Take VC Money Ever Again
A venture capitalist (VC firm) called me today outta the blue inquiring about Scratchback.com. He wanted to know what it was and if I was interested in hearing more about his investment firm. My observations from his call?
A. Nobody but me and my programmer knows what Scratchback is yet. I’m not telling a VC over the phone.
B. I would never, ever take money from a VC ever again.
C. I’m doing a heckuva job at marketing it to get that attention. :)
Other entrepreneurs will tell you the same thing I’m sure of it. Taking money from anyone besides yourself is risky and complicates the issue.
Yes, yes, yes. Perhaps you MUST take money to grow to a certain level, etc… I get that. But I’ll tell you what. In my experience. owning what you build is 1 billion times more important in the long wrong then the money you raised and the control you had to give up to get it.
So forget it. Keep your money. If I fail, I’ll fail on my own terms, my own way, without some board over my shoulder.
My advice, mortgage your house and everything you own if you truly believe in something… before taking VC money. But that’s just me.
Filed Under Ideas, Online Marketing
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I totally agree! I’d rather have limited success with moderate profit than big success and risk being pushed out (like the founder of Friendster).
I completely see where you’re coming from, here. However, I do foresee some instances where VC would be useful to some people without the means to sell their homes. Still, those seeking such money should take note of what you’re saying here, that doing so often comes with unacceptable conditions.
Is it like, “you advertise my product, i’ll advertise yours?” But yea… just wait for it to build, then the money will be bigger!!! If you give them your money now, they will start telling you what to do.
Also agreed… working for yourself is PRICELESS. Bring in VC and you are screwed.