Thread by @JRohlederLaw

🔥 MYTH: You need to angel investment or venture capital to start a real venture – or else it's just a "lifestyle" business.

THREAD...

#DisruptSF #FounderFriendlyStandard

1/ Venture capital in Silicon Valley dates back to 1957. The first VC investment was in Fairchild Semiconductor. Back then, starting a company required lots of capital. Now, not so much as @estraschnov points out.

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean 2/ When founders delay investment venture capital, they get more control of their companies. @founding

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford 3/ When entrepreneurs raise capital too early, they get less control their companies. @daviswbaer oneupapp.io

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag 4/ What's the point of raising capital early? To make more money? @TwoBitJustin points out that bootstrapped companies are more likely to make money.

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford 5/ Bootstrapping promotes smart growth rather than growth at all costs. @skmurphy

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @fahim_pour @silviamcasado @jli @ea_sportz 6/ Bootstrapping promotes long term thinking. @nicolasvdb

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @fahim_pour @silviamcasado @jli @ea_sportz 7/ Even in the short run, bootstrapping has its rewards. @salred3

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @fahim_pour @silviamcasado 8/ You can build a wildly successful business like @basecamp @doist without raising capital. @mikeboyd

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @fahim_pour @silviamcasado @basecamp @doist 9/ Or you can bootstrap just long enough to get the investment terms you want. @R44D #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @fahim_pour @silviamcasado @basecamp @doist 10/ Bootstrapping gives you the option to say "No" to bad investors. @JonahLupton #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA 11/ Here are terms bootstrapped founders can reject. Six attorneys compared @500Startups KISS @YCombinator Safe and Series A @NVCA docs @Gust Series Seed @samaltman term sheet to #FounderFriendlyStandard. See how they compare eisaiah.blog/founder-friend…

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA 12/ Hidden "gotcha" in @nvca @ycombinator @gust @sama term sheets that gives VCs and angel investors the right to veto a sale. It's exposed in 1.4 of #FounderFriendlyStandard comparison here: eisaiah.blog/founder-friend… @robwalling explains why it's a problem.

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 13/ Entrepreneurs who bootstrap can walk away from #VCs who don't agree to #FounderFriendlyStandard terms. @KateKendall

#DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 14/ One way to start your company without investors is to provide services and reinvest revenues into building a product. @John_W_Mullins, Author of The Customer Funded Business [Book] amazon.com/dp/B00JUV017C/… #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 15/ The idea of customer-funding is not new. @thegyppo #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 16/ Customer-funding should be the default answer for startups. @asmartbear #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 17/ When you're growing your startup from revenue, you won't have a lot of money at first. This is a blessing in disguise. @jasonfried #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 18/ You're not alone when you defer or decline investment. Join @radavics's Facebook group to connect with other bootstrapping entrepreneurs: facebook.com/groups/bootstr… #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 19/ The beauty of bootstrapping is customers are the boss, not some guy in a fleece vest. @ryanckulp #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 20/ Don't let startup pop culture fool you. Total $ invested doesn’t define a venture. @lkr #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 21/ Generating returns isn't basic. It requires mastery of the basics. @aaronbailey #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 22/ You shouldn't cut corners when your goal is generating returns over the long run. @webbie #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 23/ Generating returns requires carefully re-investing your profits. @pvptowers

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 24/ Did we say bootstrapping would be easy at first? No. But it's worth it in the long run. @DoctorLindy #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 25/ One more reason to bootstrap: You get to choose your team. @aytekintank #DisruptSF #FounderFriendlyStandard

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @nvca @ycombinator @gust @sama 26/ One more reason not to chase #VC. @mhsutton

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA 27/ If your business was an animal, would it actually roam the earth like a 🦓? If so then you don't need VC to grow. @sexandstartups @JenniferBrandel @marazepeda @ajscholz @operaqueenie

@estraschnov @FlyingBenji @KateKendall @Boootstrapping @miwriting @abologlu @People_Of_Space @PulsoPymeMx @Luke_Waring @IndieHackers @Malcolm_Ocean @founding @paigelindseyw @kossnocorp @JonahLupton @PlatformCalgary @sean_strands @thatcxguytweets @pauljudge @caftansochic @nate2xs @Shpigford @daviswbaer @zacksteven @yaoquan @wealthfactory_ @wayrachile @TwoBitJustin @trypag @TransmitStartUp @timy0ung @timwestergren @TheStartupsMag @peterkeates @josephmgreen @RadenJake @John_W_Mullins @andrewdsouza @eliotwb @lkr @brianealford @skmurphy @Lawrence_Jones @jglasner @BHFoundationUSA @sexandstartups @JenniferBrandel @marazepeda @ajscholz @operaqueenie 28/ You just heard from 25 entrepreneurs who verified that raising capital is *not* necessary to start a *real* venture. It is a myth that firms without funding are limited to being "lifestyle" businesses.

What would you add here, #DisruptSF #FounderFriendlyStandard?

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