The number of seed rounds in 2014 fell compared to 2013 • Hacker News Board

Re: The number of seed rounds in 2014 fell compared to 2013

#11

Post by fivedogit » Sat, Jan 17, 2015, 5:01 AM UTC

k__ wrote: post #3

So bootstrappers are on the rise now?

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it.

There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the time because the whole thing is in my head and I know what effect my changes will have. (And if I screw something up, I know how to fix it in minutes, not hours.) With a team, that's simply not possible.

Investors are going to wake up to this reality soon and accelerators will trip over each other to claim to be the "accelerator of solo founders".

Corollary to this, MBAs and other non-tech types are screwed in the years to come. Engineers won't need them anymore. 1. Make a product. 2. Get some baseline traction. 3. Join an accelerator or raise a seed round, if you need it. 4. Hire the founding team. 5. Profit.

Re: The number of seed rounds in 2014 fell compared to 2013

#12

Post by [deleted] » Sat, Jan 17, 2015, 5:03 AM UTC

jacquesm wrote: post #6

This plays right into YCs hands: seed money is harder to get, but YC is still open for business. And with the number of deals they fund the remainder of the seed world is left with what they (incorrectly) perceive as 'second choice', now that the path to YC is well known.

[deleted]

Re: The number of seed rounds in 2014 fell compared to 2013

#13

Post by jacquesm » Sat, Jan 17, 2015, 5:08 AM UTC

fivedogit wrote: post #11

k__ wrote: post #3

So bootstrappers are on the rise now?

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it. There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the…

One small problem: co-founders make you stronger. You are your own single point of failure. For many customers that makes you a no-go zone.

Re: The number of seed rounds in 2014 fell compared to 2013

#14

Post by staunch » Sat, Jan 17, 2015, 5:10 AM UTC

Most professional investors are sheep. The number and scale of opportunities in technology is growing incredibly and they're not all doubling down.

It's been almost 10 years and no one has launched a credible competitor to YC. That's proof of how incredibly weak the industry is.

Where investors are afraid, consumers aren't the least bit deterred. They don't talk of bubbles. They want cool new stuff that makes their live better and they're paying for it. The internet has reached critical mass, everyone is online and has a credit card. Which is why, in the near future, new technology will mostly come from companies that were funded by crowdfunding, not professional investors.

Re: The number of seed rounds in 2014 fell compared to 2013

#15

Post by trevelyan » Sat, Jan 17, 2015, 5:12 AM UTC

Patrick_Devine wrote: post #4

We definitely found this out the hard way. We tried to raise $750K for a seed round and were repeatedly told that our tech/team were great but that we didn't have enough traction. It's kinda hard watching people go on about the "bubble" when you're just out there trying to scrap it out and find something that works.

YC offers 20k+ for a few percent. Startup Chile is 40k with a co-investment of around 10k. That money is supposed to support the founders for a few months while they get the prototype out the door and build traction.

In comparison, 750k is a metric ton of cash, and should be enough to support a founding team for several years. Not judging, but if you're positioning it as a seed round instead of Series A that may be part of the problem.

Re: The number of seed rounds in 2014 fell compared to 2013

#16

Post by semperfaux » Sat, Jan 17, 2015, 5:12 AM UTC

jacquesm wrote: post #13

fivedogit wrote: post #11

Earlier quoted context omitted.

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it. There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the…

One small problem: co-founders make you stronger. You are your own single point of failure. For many customers that makes you a no-go zone.

"Co-founders make you stronger" is a questionable generalization. Cofounders add a lot of things, both positive and negative, and as long as you and (each of) your cofounder(s) have vital skills/resources that are unique in the group, you now have multiple "single points of failure."

Yes, cofounders can contribute bandwidth, skills, connections, and all sorts of other positive things. They can also contribute friction, disagreement, and various other negative things. It's not a cut and dry benefit.

Re: The number of seed rounds in 2014 fell compared to 2013

#17

Post by getsat » Sat, Jan 17, 2015, 5:12 AM UTC

fivedogit wrote: post #11

k__ wrote: post #3

So bootstrappers are on the rise now?

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it. There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the…

Along these lines, are there any accelerators/funds willing to fund a solo founder? If not, this seems like a good opportunity for a company which can quantify the risk of solo founders.

Re: The number of seed rounds in 2014 fell compared to 2013

#18

Post by onewaystreet » Sat, Jan 17, 2015, 5:13 AM UTC

jacquesm wrote: post #13

fivedogit wrote: post #11

Earlier quoted context omitted.

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it. There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the…

One small problem: co-founders make you stronger. You are your own single point of failure. For many customers that makes you a no-go zone.

Co-founders make you stronger, co-founders make you weaker. There are plenty of examples of both. There are examples for every narrative. There are no absolutes in startup success.

Re: The number of seed rounds in 2014 fell compared to 2013

#19

Post by getsat » Sat, Jan 17, 2015, 5:14 AM UTC

semperfaux wrote: post #16

jacquesm wrote: post #13

Earlier quoted context omitted.

One small problem: co-founders make you stronger. You are your own single point of failure. For many customers that makes you a no-go zone.

"Co-founders make you stronger" is a questionable generalization. Cofounders add a lot of things, both positive and negative, and as long as you and (each of) your cofounder(s) have vital skills/resources that are unique in the group, you now have multiple "single points of failure." Yes, cofounders can contribute bandwidth, skills, connections, and all sorts of other positive things. They can also contribute frictio…

Reminds me of remote working. Some people claim it's bad, some people claim it's the greatest thing since sliced bread. There's pros and cons to each. People build successful companies with both methodologies.

Re: The number of seed rounds in 2014 fell compared to 2013

#20

Post by trevelyan » Sat, Jan 17, 2015, 5:23 AM UTC

jacquesm wrote: post #13

fivedogit wrote: post #11

Earlier quoted context omitted.

Yes and it's going mainstream. Starting a company is so cheap and fast now that it doesn't even take a team of 2 or 3 anymore. A single person can do it. There are so many benefits to solo-founding, it's not even funny. Without co-founders, there's no delay in getting started. There's no drama. The development cycle is fast and the code can be remarkably clean. Personally, I make changes to my production code all the…

One small problem: co-founders make you stronger. You are your own single point of failure. For many customers that makes you a no-go zone.

As a solo-founder, I've never run into a customer that cared how many people were involved in my company. Once you get to the point that things look professional, most just assume you aren't running the company out of your apartment. Maybe this matters more for sales-intensive B2B startups though.