Let’s talk about venture capital and validation.
Lack of venture investment does not invalidate your business.
The purpose of a business is to sell goods or services. The purpose is to create something of value that people or companies will give you money for.
The purpose of venture capital is to pour rocket fuel into your business to accelerate your growth. That rocket fuel may cause your business to explode—in the “explode into a million little pieces and leave nothing behind but a smoldering hole in the ground” sense of the word.
That smoldering hole in the ground that contains the ruins of your startup hopes and dreams, is an accepted outcome of the venture capital business model.
Venture capital is a very specific financial instrument. It just so happens to be the one that the media is absolutely obsessed with and covers extensively. Generally speaking, that rocket fuel pairs well with SaaS and other hyper-scalable business models. But not all and not always.
Venture capital does not necessarily validate your business. Lack of venture capital absolutely does not invalidate your business. If and when you choose to take venture capital, remember, it’s just fuel. It has to be the right fuel at the right time for the right machine. And even then, you still have to build a business that serves its customers.
Listen to the whole episode here:
Startup of the Year Podcast Episode #0054 – Jason Barsema Talks About Changing The Way We Invest With Halo Investing
On this episode of the Startup of the Year Podcast, Frank Gruber talks with Jason Barsema, the Co-founder and President of Halo Investing (haloinvesting.com). Halo is the first multi-issuer technology platform for protective investment solution. Halo was founded in 2015 with a mission to provide access to impactful investment opportunities previously unavailable to most investors and is changing the world of investing by democratizing the protective investment marketplace through transparency and efficiency with the help of technology.