The Startup Velocity Question - What is the Right Funding Strategy?

I publish this series to discuss the nuances of bootstrapped entrepreneurship. Please subscribe to my Best of Bootstrapping series to never miss an article and learn what to expect from 1Mby1M.

For a venture funded startup facing velocity problems, it is a good idea to remember that before you go out to raise another round of funding, you have to have an answer to the velocity question: WHAT is hindering acceleration?

You CANNOT raise funding to figure out the WHAT.

And, you bring a great deal of credibility to the table if you can articulate the WHAT crisply.

I have always believed that clarity is the highest form of human intelligence.

If you can show clarity of understanding of what hinders velocity, and how to fix the problem, you can ask for reasonable amounts of money to do so from investors.

If not, bootstrap within your current runway until you develop such clarity.

Or shutdown and move on to your next venture.

In our work with 1Mby1M, we have legitimized Bootstrapped Entrepreneurship, raising its profile and importance in the startup world. Nonetheless, many startups have sought financing and many VCs have funded them. As of December 2023, 54,000 venture-funded startups exist in the United States alone. Globally, the number is likely to be higher.

The vast majority of these funded ventures are not gaining velocity.

In this series, we are discussing the nuances of the velocity question.

If your startup is facing Positioning challenges and you need help, please reach out to me through one of the following channels.

(1) Free Online Mentoring Roundtables

(2) In-Person Rendezvous in Silicon Valley

(3) Join the 1Mby1M Premium Program

(4) Send an email explaining your situation to request private consulting

You can read the entire series, The Startup Velocity Question, here.

Photo Credit: Arek Socha from Pixabay