how important is capital in a startup, actually? 1 min read

some prefer do startup the bootstrap way.
some prefer do startup using external funding / investment.

how important is capital actually in a startup?

i used to think it was not really that important.
but once i read this story several years ago, my opinion changed 180°.

flow

this is the story of Flow.

Andrew Wilkinson is the founder of Flow; he spent $10M to grow it.

and then a competitor arrives

and the competitor keeps getting bigger …

and finally it reaches the end

how would i picture it?

capital is important when you’re in a technological vertical race.
you need money to keep yourself relevant.
to reach more users.

it takes money to make money.

sure some can make money without money.
but it takes money to make money faster!

capital might not be that important if you’re in a niche market.
a market that no one want but yourself.

but in a vertical race?
it’s everything.

would you picture this in a different perspective?

a quote to remember

“don’t bring a knife to a gun fight”