The VC-Industrial Complex dominates the conversation about tech startups.
They have convinced new founders to chase outside funding to start their companies and win the SaaS game.
They say this because it’s their business model. It’s how they make money.
But it’s not true. And it’s not useful for new founders.
Startup founders should not be spending any time raising money when they start.
Here’s why:
1) 110% of a startup founder’s energy should be focused on building a product or service that people will pay for.
This is a brutally hard game. The odds are against you.
Raising money too early is a massive time suck that takes you away from playing the only game that matters.
2) Serious angel, seed, or VC investors don’t invest in SaaS startups before they have customers and revenues.
They are waiting for you to build something useful and prove you can sell it to happy customers before they will talk to you.
They are waiting for proof of product-market fit. And proof you can actually grow a serious business.
So build it and get customers. Get your MRR to $30K or $50K, or $100K.
Find a way to get to real revenues without investors.
Procrastinate funding as long as you can. Or forever.
Serious founders do this. And then investors find them.
