Startups are complaining that they're 'only' able to raise $1 million seed rounds
If you're just starting your startup, you don't need a ton of money to do it.
That's the advice Y Combinator president Sam Altman gave today in a mini-tweetstorm.
Today, founders don't get excited if they can "only" raise a million-dollar seed round of funding, but Altman says that you should be proud to make your company work on as little capital as possible.
After all, he says, Google's seed round would have been a rather unimpressive sum today.
Twitter/Screenshot
Altman goes on to say that Y Combinator's best companies are able to make something impressive out of little funding. But, he says, many startups have become focused on raising as much money as they can, and being frugal has "become a lost art."
Twitter/Screenshot
Twitter/Screenshot
Twitter/Screenshot
As an additional reminder for startups, bootstrapping is cool, as is generating your own revenue! It leaves you in control, and your investors will never be able to fire you.
Also, if you bootstrap a company to a $20 million exit (like TechCrunch mostly did), it can be the same success for you financially as it is for a venture backed $200-300 million exit (take, for example, Huffington Post or Bleacher Report).
So quit griping and build a lean company! As Altman points out, many of today's best companies were built with $1 million seed rounds or less.
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