#98: What VCs Don't Tell Founders About Raising Big Funding (Part 1 of 2) – Greg Head

#98: What VCs Don't Tell Founders About Raising Big Funding (Part 1 of 2) – Greg Head

Author: Greg Head June 21, 2024 Duration: 27:51

In this episode, Practical Founders Podcast host Greg Head discusses the most important things venture capital investors don't tell new SaaS startup founders. He emphasizes that VCs invest in very few businesses and are looking for big wins. Greg highlights the importance of understanding the game of venture capital funding and the alternatives available to SaaS founders.

Quote from Greg Head, Host of the Practical Founders Podcast

"If you're thinking about raising VC investment, do your homework so you know what you are signing up for before. VCs are not evil people, and it's not a bad business model—for them. 

"The world has changed for SaaS founders in the last 5-10 years, and it's still changing. You no longer need VC funding to start most B2B SaaS software companies. It's 10 times cheaper to create a sellable SaaS product and go to market now. And founders can get higher multiples earlier when they sell their companies. VC funds are also much bigger, so it's riskier for founders to play that game.

"You just don't need to make a crazy all-or-nothing bet that your company will create a billion-dollar exit in seven years, which VC investors require to win. The best case scenario for 80 to 90 % of software companies is NOT to raise big institutional venture funding."

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The Practical Founders Podcast

Tune into the Practical Founders Podcast for weekly in-depth interviews with founders who have built valuable software companies—without big funding.

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Greg Head hosts the Practical Founders Podcast, a series dedicated to the often-overlooked builders in the technology and business landscape. Each week, the conversation focuses squarely on founders who have successfully scaled their software companies through means other than massive venture capital. You'll hear detailed, candid stories about bootstrapping, profitable growth, and the strategic choices that define a sustainable enterprise. These interviews dig into the real work of building a valuable company-the early decisions, the pivotal mistakes, the practical systems, and the personal resilience required. It’s for entrepreneurs and operators who are more interested in durable ownership and practical execution than in hype or fundraising rounds. By focusing on firsthand experiences, this podcast provides a grounded perspective on entrepreneurship. Listeners gain actionable insights and honest reflections from leaders who have navigated the complexities of building a business on their own terms. The discussions are in-depth and specific, offering a valuable resource for anyone looking to understand the tangible realities of creating a technology company without relying on external funding. This is where the conversation moves beyond theory into the applied lessons of proven founders.
Author: Language: English Episodes: 100

Practical Founders Podcast
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