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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.

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

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.

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.

BH

Ben Horowitz

04/29/25

@ a16z

We realized that venture capital is a mediocre product for entrepreneurs, offering little more than money and occasional advice, which diminishes quickly over time.

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.

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

10/23/24

@ Y Combinator

Venture Capitalists (VCs) invest small amounts of money to acquire equity in startups, hoping that a few will grow large enough to cover the losses from unsuccessful investments.

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.

MS

Michael Seibel

02/06/24

@ Y Combinator

Most people who are wealthy did not raise venture capital; they often found success through other means such as real estate or professional careers.