

Tips for Alternative Funding (by Sean Murphy) - dennykmiu
http://www.skmurphy.com/blog/2009/10/19/8-tips-for-evaluating-funding-alternatives/

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dennykmiu
Short and sweet article.

Bottomline is that entrepreneurs must bootstrap their companies through the
R&D phase by forgoing salaries. By recruiting a small number of like-mind co-
Founders to fill out the initial team, and convincing each to not take
salaries, you are essentially making your own "pre-tax" investment, leveraging
many-to-one. Since you don't need to put money in anyone's pocket (including
your own), you don't need to raise lots of VC money. You might need a few tens
of thousands of dollars. But no one needs a few millions or tens of millions
to build a company anymore. My own experience is that if you can bootstrap
your company to the point where your are generating sustainable profits, then
you are in a seller's market. VC's will be kicking down your doors wanting to
buy shares from the founding team, taking money off the table but yet allowing
the company to continue to grow.

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skmurphy
Thanks for posting this. I don't disagree with your comment but the HN
"alternative funding" title has a different connotation than the post's actual
title "8 Tips for Evaluating Funding Alternatives."

