<story><title>Don&apos;t Take VC Funding – It Will Destroy Your Company</title><url>https://www.eidel.io/2023/07/09/vc-funding/</url></story><parent_chain><item><author>anonzzzies</author><text>OR (as you say, but many miss) you do not care about being the market leader. I just want to have a nice company with nice people, no stress and making millions for all to live. I don’t need vc money, stress, be the market leader or ‘be faster than the competition’. A LOT of services or products you can make a long term (decades) money with like this. I don’t need more than 10m euros in my life, nor do my colleagues and our clients are happy. No idea why I want all this misery of competing, stress, exposure, running all the time etc etc.</text></item><item><author>raesene9</author><text>The article has a lot of interesting points, but seems to miss out on one of the main reasons (IMO) that startups take funding, which is to grow faster than (or as fast as) their competition.&lt;p&gt;Unless you&amp;#x27;re lucky enough to be in a market segment without competition, you need to keep an eye on what your competitors are up to. If they can expand faster, add features faster and get more customers than you, it damages your chance of success in that market segment.&lt;p&gt;Taking VC money &lt;i&gt;could&lt;/i&gt; provide that velosity.&lt;p&gt;That said ofc I do agree that, if your goal is to run a profitable business for a long time, taking VC cash is quite possibly a bad idea, depends on what the founders goals are.</text></item></parent_chain><comment><author>lifeisstillgood</author><text>My take is the VC world will split into three&lt;p&gt;- Million startups - put loads of cash into thousands of startups globally and play a huge vegas lottery - there is a lot of work there for the BC companies but played well it will have influence at the levels seen by newspapers or major consultancies used to&lt;p&gt;- the current much maligned approach that is going to creep further up the series A B C tree supplying capital to companies that have developed the model to just churn&lt;p&gt;- your one.  The one I and half of HN is looking for :-)  Honestly this confuses me - there is a large chunk of people on this very site that you could have convinced to leave what they are doing and set up a company with the risk of doing so mitigated by &amp;quot;nice VC&amp;quot; cash.&lt;p&gt;And since everyone in the industry claims they invest in people not ideas then they are turning away people because they won&amp;#x27;t raise their price to meet a new point on the risk threshold curve.&lt;p&gt;So yeah something like VCs that fund profitable non IPO businesses seems a good idea.  I mean if you stop asking people to make moon shots maybe more of them will just make 20% per year ROI</text></comment>
<story><title>Don&apos;t Take VC Funding – It Will Destroy Your Company</title><url>https://www.eidel.io/2023/07/09/vc-funding/</url></story><parent_chain><item><author>anonzzzies</author><text>OR (as you say, but many miss) you do not care about being the market leader. I just want to have a nice company with nice people, no stress and making millions for all to live. I don’t need vc money, stress, be the market leader or ‘be faster than the competition’. A LOT of services or products you can make a long term (decades) money with like this. I don’t need more than 10m euros in my life, nor do my colleagues and our clients are happy. No idea why I want all this misery of competing, stress, exposure, running all the time etc etc.</text></item><item><author>raesene9</author><text>The article has a lot of interesting points, but seems to miss out on one of the main reasons (IMO) that startups take funding, which is to grow faster than (or as fast as) their competition.&lt;p&gt;Unless you&amp;#x27;re lucky enough to be in a market segment without competition, you need to keep an eye on what your competitors are up to. If they can expand faster, add features faster and get more customers than you, it damages your chance of success in that market segment.&lt;p&gt;Taking VC money &lt;i&gt;could&lt;/i&gt; provide that velosity.&lt;p&gt;That said ofc I do agree that, if your goal is to run a profitable business for a long time, taking VC cash is quite possibly a bad idea, depends on what the founders goals are.</text></item></parent_chain><comment><author>detourdog</author><text>The biggest obstacle I see to using VC money is that it has a good opportunity to distort incentives.&lt;p&gt;If a company has a vision fulfilling every request outside of the vision could be considered a distraction. The VC has legitimate concerns outside of the scope of the company vision.&lt;p&gt;Apple is one of the few modern companies that I can think of where the VC money was useful.&lt;p&gt;If anyone can remember google before going public and after going public might mourn the old google.&lt;p&gt;Imagine if google wasn&amp;#x27;t romanced by Wall Street but followed their own path like craigslist.org. I believe that google would have been much more collaborative. I can&amp;#x27;t see where going public helped google be good at internet search.</text></comment>