Don’t Let VCs Dictate Your Startup Focus — Instead Focus On Solving A Problem
(House keeping: If you like this approach, don’t forget to 👏 👏👏👏👏👏👏👏👏👏👏👏👏👏👏)
Over the course of more then 10 years building ventures from scratch and moving them from Angel to Seed to Series A, I came to the conclusion that hunting for VC money should be the least of your worries, for now.
5 reasons why you’ll fail when building a new venture with the goal in mind to get money from VCs:
- you’re not sustainable and not set up for mid-term growth
- your revenue stream is not a mirror of the reality
- you mess up your KPIs
- VCs can smell your real intentions
- you build a product for VCs and not to solve a problem. This issue leads then back to #1.
If you’re experiencing at least one of the bullets mentioned above, you’re probably on the wrong path and likely to fail with your startup.
Well, I know what you’re thinking now: You need money to get that thing rolling! Right? Is this what you’ve thought?
Here are 4 ways to overcome the misleading idea that you need VC money to build a company:
- build-in a revenue stream early in the process. If you fail to make revenue you probably fail with your idea.
- use value proposition design to create solutions for a problem and work towards a problem/solution fit. This will simply help you to focus on what’s really important: Your users.
- bootstrap as long as you can: What you do without VC-money is always more valuable compared to the times when you spend as if there’s no tomorrow.
- build a sandbox to test revenue ideas: A test area with your first 100–500 users will help you to prove assumptions. We’ve created an entire framework to test revenue ideas. In some startups we tested 5 and ended up with just 1 proven revenue idea.
Or apply for the Google Launchpad program (I’m a mentor) where you learn exactly this.