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Tech entrepreneur and investor Bill Flag has some advice for startup folks trying to calculate their company's valuation in order to raise outside funding. To paraphrase, fuggetabatit. He says a better alternative is to: A familiar mantra these days for many Internet entrepreneurs, perhaps, but one with particular resonance at a time when lots of VC-funded companies are cutting staff and venture funding as a whole is slowing down. As Socialmedian's Jonah Goldberg told us recently, think "small and scrappy." -- Alain Sherter See Oct. 17 post about Socialmedian from Tech Confidential See June 16 feature on falling startup costs from Tech Confidential
Comments
From: Marc Dangeard,
And the good news the data substantiates this idea: of the Top 5000 fastest growing companies list from Inc Magazine, only 3% received VC money. So if you choose the option suggested here, you have 97% chance to make it there :-)
Posted on:
October 30, 2008 2:22 AM
From: Alain,
Interesting stat, Marc, and I don't doubt the efficacy of bootstrapping. So why the fixation among entrepreneurs in chasing VC? Fine, I understand if you're a young chip or solar-cell company with some innovative IP, high R&D costs and you need to get up to speed fast. Otherwise, I wonder how much the mythology of VC feeds into tech's fixation on it. Alain
Posted on:
October 30, 2008 9:58 AM
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Amen !
Virgil
http://www.KeepAmericaAtWork.com