Protect your optionality by not raising big funding

Self-funded software startups can raise outside funding someday if it makes sense. Or not. Or sell it for under $100M.

Venture-funded software companies don’t have the option to be unfunded at some point. The race is on until you exit for big $$. Or not.

The biggest lesson funded founders tell me about their funding game is this:

  • They took funding too early.
  • Too early to know what growth and exit game they were really playing to find the right funding partner who plays exactly that game too.
  • Too expensive to try to grow fast before they really understood what their narrow product-market fit and scalable growth and LTV/CAC looked like.
  • Too much distraction with raising money and satisfying investor-partners that could have been focused on product and customer love.
  • Harder to pivot when markets change or competitors hit hard.

They wish they did it later.

#optionality

What are other good reasons to procrastinate funding?

Share Practical Founders

FREE 60-PAGE EBOOK

Win the Startup Game Without VC Funding

Learn how all 75 founders on the Practical Founders Podcast created an average founder equity value of $50 million.