Consulting v/s VC Money: How To Move Forward?
The last 3 1/2 months have been amazing! We built and launched an awesome group chat application product and created our own Startup!
We worked hard and fast because we were bootstrapping and don’t have unlimited funds to work full time forever on Talker. We’re at the crucial point right now where Talker has paying customers but not nearly enough to pay for two full time developers.
The term for what we need to do is “customer acquisition” which for the record are not our favourite words in the world. It sounds dirty as if clients were just people you buy off.
In order to get more clients we’re weighing our options which are:
Option 1: accept VC money
- We have a runway to work full time and stay focused on Talker
- VCs have the best rolodexes in the industry. They can make things happen.
- If a VC invests in your company it’s because they think growth could happen
- We give up a chunk of our company
- We have to deal with VCs… they don’t always understand our series of tubes
- Most VCs care more about selling the company for a huge profit. A decent alternative of having a lifestyle business out of a startup is not in their interest.
- They want mega growth.
Option 2: consult part time to finance startup organically
- You get to do interesting gigs and meet people who could help you out
- Some of the consulting can be done around your product
- You keep all the shares to your company
- There is no such thing as a part time job when you have the kind of passion we have
- We’ll work twice as hard(doubly difficult since we’re both fathers)
- We risk spreading ourselves too thin and have little energy for our product
We’re not decided on what we’re going to do yet. We’re really committed to Talker and we’re only wondering what the best way forward with it is. If you have any feedback or ideas please get in touch! We’d love to pick anyone’s brains!