As much as I’m not personally a big fan of raising VC money for my projects, there’s been this thing that kept on coming back to me in the last period of time.
And that thing is: it’s never been easier or cheaper to raise capital, ever, in the history of humanity.
The add-on is that this won’t last for very long. It’s been lasting for quite some time — but it won’t be like this forever.
There are economic cycles and there’s no doubt we’re in the late stage of this cycle. It will end and along with that, the claim I’ve highlighted above won’t be true anymore.
Think about it. I struggle with it personally, since it’s a bit of FOMO. With the Legit Check App, one of my projects, I’d avoid getting VC funds for multiple reasons:
- The short-term path is very clear. I’ve noted before how at the moment we’re simply building a library of information — so no tech at all, just the “media” company aspect. The thinking is: gain the user base first and then the opportunities are endless and they have a head start — since 1M targeted users is a good head start by my standards
- It’s not a product that has to happen as soon as possible. It is, but it can be here today or a year after. It’s not like HelpScout/Drift/Intercom/etc. or Monzo/Revolut/etc. which are fighting to death and they need funds to be in the race — that is, unless a competitor simply comes out.
- Ownership and long-term thinking. The only thing is, it’s been on my mind since I’ve been weighing the “cheap cost” of raising money.
Nonetheless, it’s a hype train. I can change my mind in a second — and besides, this trend will die eventually with the end of the economic cycle. We’ll all go back to “How to bootstrap a company”.
Will we look back and probably call it tech bubble 2.0? I don’t know.
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