Genuine VC

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Are We Entering 2013 in Crunch-Mode?

Genuine VC

Look back to the reasons why there was a Cambrian explosion of seed funding in the first place – a dramatic reduction in the initial capital requirements to launch a new company because of cloud hosting infrastructure, social graph distribution platforms, open source and low-cost development tools/methods, etc.

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Never Raising Capital Ever Again

Genuine VC

Any additional capital fundraising, whether it’s for debt or equity, startup or mature public company, is to facilitate growth ahead of cash flows generated by the business. (Or Or perhaps also to dividend out cash to shareholders in mature public companies with a low weighted average cost of capital, but that’s irrelevant here).