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MS

Michael Seibel

02/06/24

@ Y Combinator

If your business can appear on 'Shark Tank', you probably shouldn't raise venture capital, as that type of business is not typically suited for VC funding.

Video

YC

Should Your Startup Bootstrap or Raise Venture Capital?

@ Y Combinator

Should Your Startup Bootstrap or Raise Venture Capital?

02/06/24

Related Takeaways

MS

Michael Seibel

02/06/24

@ Y Combinator

The vast majority of businesses should not raise venture capital, as venture capitalists are not interested in investing in most businesses.

YC

Y Combinator Cast

02/06/24

@ Y Combinator

It's crucial to understand that raising venture capital is a business transaction, not a personal one; investors expect a return on their investment based on the potential for profit.

YC

Y Combinator Cast

02/06/24

@ Y Combinator

Some businesses genuinely require upfront capital to succeed, and venture capital can provide that necessary funding when other options are limited.

JS

Joel Spolsky

10/25/13

@ Y Combinator

The decision to bootstrap or seek venture capital is crucial; most entrepreneurs do not rely on VC funding.

MC

Mark Cuban

03/30/24

@ Lex Fridman

Many entrepreneurs tend to overvalue their businesses, which often leads to conflicts during pitches on "Shark Tank."

KA

Kofi Ampadu

05/06/25

@ a16z

Venture capital is funding from professional investment firms in exchange for equity, suitable for businesses with significant growth potential that need substantial cash to grow quickly.

DC

Dalton Caldwell

08/30/19

@ Y Combinator

It's acceptable to pursue ideas that don't require venture capital, as most businesses don't need it to succeed.

DC

Dalton Caldwell

05/13/23

@ Y Combinator

If you believe that venture capital isn't a good route for your business, that's a valid reason not to apply to Y Combinator, as it operates within that framework.

MA

Marc Andreessen

04/29/25

@ a16z

Venture capital is like being at a sushi boat restaurant where you meet many startups, but the sushi is typically not great, highlighting the complacency in traditional VC.