Some founders are convinced that the only way to build a valueable tech company is to raise a ton of venture capital. While a huge amount of funding might enable you to scale faster, it doesn’t necessarily increase your chances of success in the long run.
Sure, having lots of money in the startup’s bank account generally results in a longer “runway” for your startup, which means that you have more time to make your business model work. But on the other hand, this also means that you might loose your focus, since your’re not in a hurry to make money. And your laser-like focus on your product and sales is what matters in the end. In fact, raising VC funding distracts you from your core business, takes a lot of time and effort and the majority of startups doesn’t succeed in raising venture capital anyway. So: Try bootstrapping first!
If you’re not conviced yet, check out the the presentation below, which was created by Abhishek Shah, the Co-Founder of DigiLands.