Alex Moore co-founder of Baydin, Inc – developer of the popular Boomerang email app – advises against wasting time chasing VC funding.
For his company – and probably for most other early stage companies that is sound advice. Moore and his wife and co-founder Aye Moah, chose not to pursue venture capital funding and focus instead on managing their business. The fact is that their business is really a ‘lifestyle’ business. But what is a lifestyle business?
While many investors think of the term as a negative – current thinking even among many VCs is that companies need to focus quickly on gaining traction. Traction allows companies to survive. If companies don’t have traction they won’t have enough resources to waste chasing investment.
Entrepreneurs need to be honest with themselves and understand their motivation. Do they really want to to build and run a business, or do they just make a lot of make money?
The fact is that it’s hard to build a business. Making a business that has value requires dedication, creativity and a certain amount of luck.