Dream Big
When hackers begin building something it is out of need or utility. The hacker has a problem and wants to solve it. They have done this their whole life and programming has allowed them to speed up the process. Hackers rarely think about the big picture. It is something they are taught.
Dream Big or Bootstrap
If you are looking for outside funding from venture capital, you should be thinking incredibly big. Big and Billion both begin with a ‘b’. Only huge dreams get funded. If you dream too small, there is nothing for the financier to salivate about. Think about your companies current vision. I’ll wait.
I guarantee you, it is too small. The vision, unlike the product, should overlap with other startups, because it will not be a unique idea. Other people have thought, and even pitched, your vision.
The bigger and more incredible the idea, the easier it is to fund you.
Businesses Require Money to Operate
No dreamer is ever too small; no dream is ever too big.
- Anonymous
If you can bootstrap, do it! Github, Atlassian, and 37 Signals did and two of them have gone to raise some amazing first rounds. Bootstrapping is the oldest way to create a business. Find something people want. Deliver it. Get Paid. Take the Revenues, put it back into the business. Find something people want and repeat.
If you can’t do that or your business requires some “tech” to build out, you have two options.
- Build it in your off-time.
- Take Financing from an external source.
Although the first is not sexy, many companies and businesses began with someone building their dream in their off-time. We are too quick to look for outside funding to build companies.
Outside funding can also be from a source that is not venture. You could get funding from a bank as a loan to start your business also. Many entrepreneurs also went into credit card debt to fund their businesses. I personally think this is a bad move, and am all about living debt free, however, it is an option.
Small Dreams Don’t Get Funded
The future you see is the future you get.
- Robert G Allen
If you decide you want to raise capital from venture or angels, then have a huge dream. It will have to be something revolutionary, that will change the world. Anything short of this will not be good for your financing.
90% of startups fail. Which means venture capitalists need 100x returns to make 10x returns for their limited partners. This means if they give you 1mm at a 4mm valuation (20%) of your company, they want 100m back. Meaning you have to exit at 400mm.
The bigger you dream, the larger the opportunity is before you. How many lives will your startup change? Will people look back and say, I don’t know how I did anything before this product.