Caterpillar Cowboy

rafer:

caterpillarcowboy:

rafer:

Steve Blank Quote:
It should go without saying that this post is not advice, nor is it recommendation of what you should do, it’s simply my observation of how companies using Customer Development positioned themselves to successfully raise money from venture investors.

Rafer sez:
I’m all for being non-judgmental, but this is ridiculous. When you are in a position of authority, it’s incumbent upon you to say when something is a terrible idea. Do not publish instructions on precisely how a founder would poison the next couple years of their lives.

I’ve shared my thoughts on it, but I’m curious (since you have more experience than me) what you find so objectionable.

Rafer sez:
@cowboy You aren’t the only one who asked, so I must have been unclear. Blank is laying out a path to raise a round of capital before there’s a business. Raising such a round has such a tiny, tiny probability of providing economic benefit to first time founders that it’s the startup equivalent of Russian Roulette instructions — using five bullets instead of one.

He ought to have written “Don’t do this” across the top in big red letters. And since that’s the case, why write it at all?

I didn’t draw that conclusion at all from his post. It seemed to me he was saying the opposite - don’t raise money on an idea. Instead, get market validation that your product is the right product, which includes proving you have a repeatable sales model. At that point, do a Series A if you need it.

Maybe I’m misunderstanding and your point is that startups should avoid VC money at all costs until they are generating meaningful revenues and are looking to scale the business. Which is always the best option, if you have the financial means to get that far on your own.