http://www.discourseandnotes.com/blog/2010/07/13/old-fashioned-private-equity-a-new-venture-framework-for-a-new-market/ Sun, 04 Dec 2011 14:19:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.discourseandnotes.com/blog/2010/07/13/old-fashioned-private-equity-a-new-venture-framework-for-a-new-market/comment-page-1/#comment-142 Dan Wed, 14 Jul 2010 23:01:49 +0000 http://discourseandnotes.com/blog/?p=1366#comment-142 Thanks for that, Kuni. I agree all around. Thanks for that, Kuni. I agree all around.

]]> http://www.discourseandnotes.com/blog/2010/07/13/old-fashioned-private-equity-a-new-venture-framework-for-a-new-market/comment-page-1/#comment-141 Kuni Takahashi Wed, 14 Jul 2010 22:58:22 +0000 http://discourseandnotes.com/blog/?p=1366#comment-141 I think bootstrapping is a very important skill for start-ups with many benefits as you mention, the reliable cash machine. However, it also comes with some drawbacks if you ever want to raise substantial capital down the road. For example, growth rate. I've talked to a number of VCs that won't look at a deal if the company is not growing 20% YoY with revenues more than $1M. Obviously, this is a narrow point of view, and like you said, VC investment frameworks may also need to be adjusted. I think bootstrapping is a very important skill for start-ups with many benefits as you mention, the reliable cash machine. However, it also comes with some drawbacks if you ever want to raise substantial capital down the road. For example, growth rate. I've talked to a number of VCs that won't look at a deal if the company is not growing 20% YoY with revenues more than $1M. Obviously, this is a narrow point of view, and like you said, VC investment frameworks may also need to be adjusted.

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