VC’s vs. Incubators vs. VISA

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Ben Yoskovitz, a founder of StandoutJobs, which recently closed a $1.5 Million round has an excellent post on whether a startup should raise money from VC’s or not.Coming after yesterdays broohaha with Guy Kawasaki’s post on starting a website for $12K – its extremely timely.The question of startups getting VC’s or angels, versus Skunkworks projects on your visa, or as i like to call it Spaghetti Ideas from ‘throwing spaghetti against a wall to see if it sticks.’ Is a perfectly legitimate way to see if a project/product has legs, though common sense should be applied before setting out on the journey.Closer to home my company is working on a program that helps develop startups. Part of my daily routine is working with small teams of bright energetic engineers/programmers/biz-students to work on projects that may or may not turn out, we have a number of teams on multiple projects. In web 1.0 it sounds like an incubator, but with a bit more than a Web2.0 budget than Ycombinator. We just simply call it our Ventures Program.I also disagree with Guy about location, we bring the teams to our offices to work with us, they go back to their place of origin eventually but their time here is necessary. While some of the plans developed are our own (internal) ideas, the teams have the opportunity to branch out and if we see merit develop their own opportunities. We don’t develop spaghetti idea’s, people can (and i occasionally do) develop them but not in our program, we want viable stand alone businesses. Not a weekend project that costs us $15K, to me thats just stupid. I don’t know about Guy but my time costs me. I enjoyed the fact that Guy never mentioned that his time was worth anything, but I digress. For a more nuanced view Checkout Rick Segal.In the end how you develop and or finance your business depends on your circumstances. No one can tell you the best way forward without actually sitting down and working it all out. Ben’s article which sparked this post is a great place to start on the the thought process you should be having when looking to start your next big idea.

The Author

Hi. My name is Matt Roberts, you can find me at www.mattroberts.com.

2 Comments

  1. Ben Yoskovitz says

    Matt – I appreciate the kind words. I read Guy’s thoughts about building a biz with $12k and I said, "Sure, but it depends on the business."Truemors can be built for $12k. Heck, outsource it to India and it could have been less, I’d guess. And while Truemors might be a fun business with a simple advertising model (or maybe there’s more there, who knows) it’s far from game changing. Not that game changing ideas all have to be more expensive, but he’s pushing one point of view to make a specific point and that’s it.But that’s what gets so many people talking about him. *grin*

  2. Life Saving Beverage says

    I say kudos on the $1.5M financing as well as a team of the right people to lay out the foundation. Money + the Right Team =Brilliance.

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