If you can count it on two hands…

Posted on January 10, 2008
Filed Under Uncategorized | | Written by Gary Reid

Mike Butcher, over at TechCrunch UK reported a post at FoundRead titled 9 VC’s you’re gonna want to avoid. It’s a funny list and worth hopping over to read.

Of course the real story is that the first six months of 2007 saw a record number of VC investments in UK Web 2.0 companies - so how many did it take to break the record? Seven! That’s right 7, Last time I counted my fingers I had more than 7.

So, I’m guessing you don’t have to do too much ‘avoiding’ - but fair play to Larry Chiang who compiled the list, he did say it was for companies who have hit the magic $1 million in revenue already.

Fundraising is tough. So more and more of you bootstrap as long as you can. But once you get close to $1 million in revenues, VCs will come calling. That’s right: they’ll come to you.

You do realise that there was more major lottery winners in the UK in the first half of 2007 than Web 2.0 VC deals. In fact right now there are 17 unclaimed lottery winners, it could be you, totalling over  £11 million which funnily enough equals what VC’s invested in the UK - $22 million invested.

The moral of this tail, bootstrap into profit, play the lottery, check your not on the unclaimed prize list, get into profit, build revenue to over $1 million and when the VC’s come calling move office and don’t tell them.

I think here in the UK there are so many people who just don’t understand the entrepreneur psyche  - it’s different to the USA. In the UK Fame and Recognition and Financial Gain never come that high up as a reason for starting a business. People see starting a business as a way to get away from the corporate monster not create their own. Whether that attitude is right or wrong isn’t an issue we can easily change.

I just wish more time and energy went into helping these folk rather than trying to create a huge group of get rich quick kids all chasing one of the mighty 7 deals. Admittedly it usually is the Johnny-come-lately  who  tries to create this ‘chase VC’ environment, but thankfully common sense always comes to the rescue.

I’m not saying we shouldn’t think big, I’m just saying we need to get real.

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Comments

3 Responses to “If you can count it on two hands…”

  1. jamescoops on January 11th, 2008 6:31 am

    Great post - this blog deserves more readers - am going to try and spread the word.

  2. broadstuff on January 11th, 2008 7:00 am

    Startup Funding via Lottery Ticket Purchase…

    Very funny piece here in Kitchen 2.0 about having more chance of getting funding via lottery ticket than VC money (tip of hat to JamesCoops). To quote:

    You do realise that there was more major lottery winners in the UK in the first half of 2007 than…

  3. Gary Reid on January 12th, 2008 8:08 am

    Thanks James

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