Most SaaS founders think they need VC funding. They DON'T.
Here's the brutal truth:
99% of founders should build a startup that becomes profitable in 12 months:
- Why? Because they’ll never be able to raise another round!
I'm serious.
I hear non-stop from people who:
- Raised a seed or Series A round
- Scaled quickly
- Burned through capital in a year
- ...and can’t get more capital to keep the party going
Here’s the reality…
Your next funding round will only happen if you’ve hit INCREDIBLY high growth targets set by your VCs. You’ll need to show the “triple-triple-double-double” story, or better.
And if you don’t do that, you’re stuck on the slow, painful path to profitability.
That’s why I think you should act as if your next round will never happen.
Why should we put VC expectations aside and focus on patience and profitability?
Because VC-funding expectations set people up for failure.
At the end of the day, what matters most is this:
Customer Revenue > Investor Money
Don't get me wrong.
The VC machine creates amazing companies.
I work with and love dozens of them.
That machine just set up a lot of founders for pain.
Most would be better off if they realized, from Day One, that the VC plan wouldn’t work.
Most wouldn’t have started if they knew they’d be sitting where they are.
Listen to your instincts.
Focus on running a profitable business.
Do that and nothing can stop you.
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👋 Don't know me? I'm J.Y! I've been building things and making money online since 2017, and I share my entrepreneurial journey here on LinkedIn.