There's situations where it makes sense to raise $X million. And then there's situations where it makes sense to take nothing, bootstrap and become self sufficient.
How do you compete against YouTube, Big Banks, Twitter if you generate $1 in "FU money" profit? A VC approach may make sense if that's your goal.
But if you're creating a REST API client, selling it B2B, why are you raising $250 million at a $5 billion valuation [1], when you can just start selling it through organic dev network effects and growth?
Comments
There's situations where it makes sense to raise $X million. And then there's situations where it makes sense to take nothing, bootstrap and become self sufficient.
How do you compete against YouTube, Big Banks, Twitter if you generate $1 in "FU money" profit? A VC approach may make sense if that's your goal.
But if you're creating a REST API client, selling it B2B, why are you raising $250 million at a $5 billion valuation [1], when you can just start selling it through organic dev network effects and growth?
Context matters.
[1]: https://news.ycombinator.com/item?id=39702610