@DrewLytle
Liked the measured approach, but took issue with a couple points. The first one being that there is definitely a moral debate around whether to go VC backed. There are many perverse incentives that exist for VC backed companies and founders that just don't occur if you bootstrap. Second, the idea that "there are many paths" and "no one is pressuring you to start a VC backed company" is just not true. For many would-be tech entrepreneurs, the media landscape promotes and glorifies raising venture capital far more than it does bootstrapping or engaging with alternative models like starting a cooperative.
@TheJordanLeopold
Great perspective! I would also add a hybrid approach - bootstrap, find product market fit, then ask for VC money to scale. Most VCs want some form of traction to begin with. So if you caaaan, start your business, achieve clear success, have a vision for mass scale, and then pursue VC dollars. But if your company isn’t a potential unicorn that can return 100x return to your investors, then stick with the small software approach Michael and Dalton mentioned. The money is still good!
@SenthilPremraj
VC money is the closest to a forgivable loan for early stage startups. If founders had access to other forms of forgivable loans for taking risk then VC will just be some niche field. There is also discontent that certain "elites" get access to other ppl money and pick winners and losers and get the upside but don't face downside risk. It creates a sense of haves and have nots.
@AnthonySistilli
You know it's gunna be a good day when you get that notification that a new Dalton + Michael drops
@michaelkariv
My definition of a great podcast is when hosts laugh more than they talk, and 100000 people still want to watch it
@nic.frasca
I think a big point missed or understated was owner’s freedom. If you get an investor based on an ambitious business plan you got yourself a boss. In my case I would avoid it as much as possible, otherwise being a founder would be too similar to being an employee
@amorosogombe9650
I love these talks. Clear up so many cobwebs. I think another thing is the "VC" validation syndrome. "If I make it into YC, I'm a success".
@GabrielSestrem
Try to use your own money. I sold my house and put into the company. That skin in the game made me work long nights for two years. This will give you leverage. Secondly, being anonymous and not being noticed it’s good. There won’t be many people copying your product nor competitors attacking your infrastructure. Try not to be noticed as long as you can.
@hustlin_heev
The real issue is being VC backed is seen as "success", so founders spend all their time pitching VC's and trying to raise, instead of talking to customers and building their start up. All the pro-bootstrapper guys couldnt handle the grind of pitching 100 VCs and getting rejected 99x so they hate on it saying "bootstrap or bust, VC sucks" 🤣
@bblatnick1
5:35 Not true. Microsoft did not need VC money. Gates famously is quoted as saying he only took a VC check to get a VC on the board. The money wasn’t needed and just sat in a bank account.
@bbsara0146
Only criticism I have of this take is that YC invests in primarily B2B and B2C SAAS companies that require very little capital. you are not investing in nuclear power plants that costs billions to construct. so you are essentially selecting a very narrow band of potential companies that fit the tech startup mold
@momofomomofo
"No other mechanism exists" we used to have public markets fund early-stage companies. Maybe if VCs hadn't privatized the funding market while they actively kill companies that aren't immediately 100-baggers (the misery isn't equal btw - founders bear by far the brunt of it), this topic wouldn't be so controversial.
@dhootparm
I have a hardware /software startup, I wish there was a middle ground like a VC lite that invested in companies that have a higher chance of success but promise only a 10x to 100x chance of return. Anyone know anything like that?
@Joshbelieveit
Having been involved in the Portland start up ecosystem, I think it's very location dependant on the debate or not. Certain markets have different VC companies and different experiences than others. I would also say many boot strapped founders are very proud of not having outside support. This is a great talk breaking some of the outside noise that happens. ❤❤❤
@apprehensivetoe9811
😊 these guys have too much fun together
@titusandronicus8432
Small nitpick on the the fact that all trillion dollar companies are VC funded: Microsoft did receive 1 mio from TVI, their only investor , but never touched a cent of it. Realistically they werent "funded" by anyone, it was just part of the deal to get TVI on board
@mikerossvisuals
shoutout to Michael Seibel! We've missed your unique laugh, homie!
@beasttech3694
i was Very Confused about this Thank you so much for Clearing My Doubts, these two guys helping me build my Startup Thank you YC ❤
@KaFeCocoa
10:55 How on earth did WeWork get funded? It was nothing but a real estate rental biz, masquerading as a tech company. Thumbs up - If you want to hear Dalton and Michael's breakdown on a future video.
@chapterme