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If you're doing a web/mobile startup what do you need VC financing for?

Might as well go see a VC about opening a Pizza shop, it makes about as much sense.

The people who are losing to VCs have no leverage, if you have no leverage you will always lose the negotiation.



There's a VC funded Indian burrito joint in Palo Alto. I've eaten lunch there three times, once with a potential investor.

Food's terrible to boot.


Tava Indian? They're in SF as well now, I share your experiences.

http://www.tavaindian.com


Yep. Awful food. Not, "awful Indian food". Awful by any standard.

I don't think the founders had any experience with food before doing Tava.


Haven't eaten here, but if this is true, it's a tragedy. There are so many ways to do an Indian burrito right.


"fear and greed" (usually the slogan of wall street) immediately came to mind.

Greed for a huge exit. Fear of being overtaken by a VC funded competitor.

I think it's a legitimate concern.


Greed for a huge exit.

I'm not sure this theme will survive much longer. It seems no coincidence that the founders of the two most successful YC companies, Dropbox and Airbnb, weren't interested in any "big exit". (Drew remarked on his YC app that he'd find it difficult to turn down a million dollars for 6 months of work, but even that reads like he probably would've passed on such an offer.)

The most promising founders seem not to be interested in exiting.


Exactly. You only go to a VC when there is a real need for capital to purchase equipment or pay salaries. Though the vast majority of "startups" can be done by one or two people coding and selling part-time. Hell, I've managed to develop businesses with less than $50. Profitable businesses.


Might as well go see a VC about opening a Pizza shop, it makes about as much sense.

Rich Miner, head of Google Ventures, financed Cambridge One.

http://www.cambridge1.us/about.html


[deleted]


I think it was just a personal investment.

However, if we're talking VC investment in food service, both Philz and Blue Bottle raised $20M from VC funds over the past 12 months.


Yeah that sort of thing makes sense, in the same way that Facebook taking VC did, however, it makes little sense to take VC for a prototype with no users.




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