Profile Information  Full Name redbaron Display Name redbaron
Blog Comments & Posts  Blog Post: June 28, 2009   • Great post.
Just want to make the point that BURN is in fact a four letter
word. It should be avoided if possible. Else keep it as low as
you can. Because BURN = LOSS OF CONTROL.      People, usually
VCs, make the argument that you need to BURN to scale up. This
is not true. It is just as easy to grow a company fast and be
profitable at the same time. Especially software companies that
can now go SaaS to avoid up front capital expenses and then
spend as they earn by hosting on services like Amazon AWS etc.
As an entrepreneur myself who has raised VC money, I would say a
company's success is more often tied to to the founders staying
on (at least for the first few years) in leadership positions to
keep the company focused and executing,  than on VC investment.
So keeping control is not a bad thing promoted by egotistical
founders. In fact, most of the time it is just what the doctor