TLDR:
- It’s advised not to raise capital too early in a startup journey, as it’s essential to have a clear understanding of the problem space, niche customer, and global vision first.
- Not every founder should aim for a unicorn startup, as it’s important to align the business size with the high-level goal and subsequent effort required.
In a recent article, a VC offers four contrarian pieces of advice for founders. The first piece of advice is to avoid raising capital too early in the startup journey. It’s crucial for founders to thoroughly understand their ‘why’, ‘how’, and ‘for whom’ before seeking investment. By spending time listening to customers and understanding the market, founders can build a strong thesis without raising capital prematurely.
The second piece of advice is that not every founder should aim for a unicorn startup. The size of the business should align with the founder’s high-level goal and the effort required to achieve it. By focusing on the ‘why’ and setting realistic goals, founders can avoid unnecessary pressure to scale rapidly.
The third piece of advice is to do the unscalable things. By being comfortable with doing things that may not scale initially, founders can gain valuable insights into the customer journey and test assumptions effectively. Building one customer at a time and obsessing over customer problems can lead to significant progress in the long run.
Lastly, founders are advised to stay away from ‘sugar hits’ such as awards and recognition. While validation is important, early-stage startups should prioritize customer, market results, and team engagement. Awards can be distracting and may incentivize suboptimal behavior. Instead, founders should focus on customer satisfaction and building a product that customers love.
