Title Options:
• How First-Time Founders Can Win
• Why First-Time Founders Need VC Money
• Beat Experienced Founders With Funding
I have seen a lot of advice lately telling first-time founders to bootstrap their companies.
I want to share a different perspective based on my own experience as a repeat founder with an exit.
My Honest Take
This is my opinion as a repeat founder with an exit behind me.
Most post-exit founders I know want to own 100 percent of their next startup.
They do not want the pressure from VCs.
They want to control their own destiny.
The Bootstrap Problem
Yet every LinkedIn post recently promotes bootstrapping as some universal law first-time founders should follow.
This is not good advice.
Founders with an exit already have some cash reserves.
They can always raise money easier on better terms so they take their time and wait.
The Reality Check
If you try to bootstrap your own company as a first-time founder, you are in for a world of pain.
You will likely run out of money and then you are in trouble for real.
Even if you do get profitable, you will end up competing with experienced founders who are also bootstrapping their company.
These founders will likely out-execute you and make fewer mistakes, especially with their deep domain experience.
Outspend Them
So the only way to beat them is to outspend them from the start.
VC funding is the way.
It allows you to make more mistakes, hire more people and increase your odds of winning.
If you get good VCs, you can also benefit from their experience (good VCs are often repeat founders).
Conclusion
If you are a first-time founder, go try and raise as much money as possible.