With 500 Startups Accelerator’s new class introduction video and its notorious chant, you can’t help but wonder if the current system for funding startups is really the best route to building lasting companies. Some even believe that the funding-centric mindset of startups in Silicon Valley is toxic.
I couldn’t agree more. Which is why, other than some modest help, we opted to not pursue investors for our company and go it alone instead. I’m convinced that for a lot of startups (though certainly not all) choosing to bootstrap instead of searching out VC money is the better strategy for a number of reasons.
A focus on pleasing customers, not investors
When you don’t have a lot of money, you’re forced to turn to the funding source that rarely tolerates mistakes: customers. Specifically, focusing on the product results in the creation of a “minimal viable product,” a pared-down, core offering that delivers…
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