Thu, Sep 11, 2014
Further to my point about bootstrapping: I’m a big proponent of raising capital when you’re ready for it.
Sadly I encounter too many entrepreneurs (often first-timers) who want to raise capital too early and aren’t ready to hustle to build value before going out for funding.
The reality is — unless you have proven yourself either by having created value before (aka you’re a second, third or nth-time entrepreneur) or you have actually created value — you will spend endless cycles chasing capital. And the capital you might be able to raise ends up being dumb capital as the smart investors will chase the entrepreneurs who have created value.
Focus on your product, focus on your customers, focus on creating value. And raise capital when you’re ready for it.