Why is this new and why is this not self-evident? Havent people done this for eons? The street corner pizza shop is started in this manner where a small investment by the family, followed by a ton of blood, sweat and tears is used to build a fiscally responsible company. Same with numerous businesses where developing a product on the backs of a service offering to bring in revenue following a small startup investment is very common. I fail to understand why this is being shopped as a "new model" while this has been going on for a very long time all over the world.
Nice article, thanks. The idea makes sense from a founder perspective - But my experience is that investors won't bite. You address this briefly, saying "perspective is split" in the investment community, but I'd like to hear more discussions about what exactly these seed strapper investors expect, if not a payout from future rounds/ acquisition/ IPO.
I would love to hear more about that as well because we have been seeded strapping, although not really - more like boot strapping and it feels to me that having revenue and showing that we can be profitable before we scale isn’t as much of a benefit to the VC’s that I’ve spoken to.
The challenge is that to seed strap you still need to tell a unicorn story to the seed round investors in terms of TAM and growth targets. So this works for a company that has a VC story but then chooses to run lean.
This is very interesting, this is the problem with "ideas can change the world" but has to be fueled by VC--any VC. That should be a choice of the founder--which is why I love the idea of seed strapping. I love it. thank you.
Great insights, as always!
Nice insight! Seed strapping in a way, is going back the fundamentals of why and how we raise funds
Why is this new and why is this not self-evident? Havent people done this for eons? The street corner pizza shop is started in this manner where a small investment by the family, followed by a ton of blood, sweat and tears is used to build a fiscally responsible company. Same with numerous businesses where developing a product on the backs of a service offering to bring in revenue following a small startup investment is very common. I fail to understand why this is being shopped as a "new model" while this has been going on for a very long time all over the world.
Perhaps because it is newly being applied to the hyper-scalable business of software?
Nice article, thanks. The idea makes sense from a founder perspective - But my experience is that investors won't bite. You address this briefly, saying "perspective is split" in the investment community, but I'd like to hear more discussions about what exactly these seed strapper investors expect, if not a payout from future rounds/ acquisition/ IPO.
I would love to hear more about that as well because we have been seeded strapping, although not really - more like boot strapping and it feels to me that having revenue and showing that we can be profitable before we scale isn’t as much of a benefit to the VC’s that I’ve spoken to.
The challenge is that to seed strap you still need to tell a unicorn story to the seed round investors in terms of TAM and growth targets. So this works for a company that has a VC story but then chooses to run lean.
I had no idea the philosophy of how we’re building our company had its own nickname! It’s going in the pitch deck!
I want to learn more about compliance so I made an appointment
This is very interesting, this is the problem with "ideas can change the world" but has to be fueled by VC--any VC. That should be a choice of the founder--which is why I love the idea of seed strapping. I love it. thank you.
How do investors exit in seed strapping?
Interesting!