Hacker News Reader

> There are thousands of great entrepreneurs all over the world who could turn 150k into a profitable little company.

Alas, VCs are not after profitable little companies. They just plainly would not allow you to become a little company, profitable or not.

View on HN

Not in our case, we love startups reaching profitability by just raising a seed round. It's most of the time the best way to confirm that the business model is right.

It's also easier to raise a big round after that, invest a lot and grow.

Okay, how do you suppose to exit then? I take $150K from you, create a small SaaS service a la @patio11 and then start slowly crank up customer base, showing stable 10-25% y/y growth. I see no exit for your 15%

We sold Sparrow to Google with this model and the founders are now millionnaires. but this is not what I'm saying. You're reaching profitability first and you're building a big company just after. Market Size is the most important but it's not because your market size is big that you have to take risk and hit the wall without enough cash to survive. Profitability/Breakeven is giving you the time to raise as much money you need/want

Reply on news.ycombinator.com