Picture going up to a local pizza shop and saying, "How will you ever do well if you have no plans to scale to be a national chain?!" That's a lot of tech's attitude toward starting a business, and it's really quite silly when you compare it to other industries
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Replying to @sehurlburt
If you're going to ask someone to invest in you and they want the best possible return then that's exactly the response one would expect. Scalability and repeatability are the keys to success.
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Replying to @Jakewk
Hmm, not necessarily. It depends on the risk they're willing to take. If they wanted the best *guaranteed* return on the pizza shop, a modest profit in the local community is best. But if they're willing to take big risks, yes, they'd ask it to scale way up.
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Replying to @sehurlburt @Jakewk
You can see this reflected in bank loans. A bank is totally willing to lend out money to pizza shops not looking to be national chains, VCs think more in terms of "invest in a lot and hope one blows up huge and it's okay if the rest fail" than banks do
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Replying to @sehurlburt @Jakewk
And there isn't a great middle ground option for fundraising for companies that have a good path to modest returns with relatively little risk. In general, that profile gets you rejected instantly, but that means there's $ left on the table by investors.
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Replying to @wycats @sehurlburt
There is a significant amount of individual lenders that will fund moderate investment, more than you might think, it's just not an organized market. It's very bespoke amongst the HNW crowd.
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Which means if you're not in that crowd, good luck.
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