When you start a startup the temptation is to raise capital. The idea of getting outside investors happens right after you’ve a working application and a few customers. After all, if you had extra cash you could scale faster and exit quicker.
The reality is that raising capital means you’re selling a piece of your company. And while you’re raising capital you’re not selling your startup’s product.
Saas crack is paying customers not investor cash. Customers tell you what you should be building. Cash only tells you how to financially engineer your business.
If you don’t have an investor cushion you’ll stay lean longer. You’ll figure out that you don’t need a SVP of Sales, or a CFO, or a Regional CEO. It’ll drive you to be more focused on building something your customers want to use for a long, long time.
So instead of celebrating closing another investment round, celebrate the day’s that you don’t have to sell off another part of your company.