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377 sats \ 6 replies \ @niftynei 28 Dec 2023 \ on: jb55: "This will likely be the last year of damus" nostr

kinda ironic that primal went the VC route but Damus didn’t b/c jack told jb55 not to take VC money

(image from the ten31 portfolio page)

https://m.stacker.news/9821

0 sats \ 5 replies \ @ek OP 28 Dec 2023

I don't know much about VC stuff so this might be an ignorant question:

Is it too late now to take VC funding? Can't he at least say: "Hey, I changed my mind, do you still want to give me money?" If not, why not? Or is this not how this works for some reason? Since no one wants to invest in someone who changes his mind "just like that" on a topic like this?

ok, this might have been multiple ignorant questions, lol

858 sats \ 4 replies \ @niftynei 28 Dec 2023

I have no idea how VC funding works, but I’d imagine it’s a different skillset than building code.

At the end of the day, a VC is going to want to see a business model though. Question is it better for him to build out the business model now without funding and hope it takes off fast enough to pay bills before his runway ends? Really sucks that Apple rugged his zap splits model, iiuc that was working great.

Now he has to launch an Android app and hope that hits cashflow velocity before the year ends 🤷

1007 sats \ 1 reply \ @k00b 28 Dec 2023

fwiw

I have no idea how VC funding works

selling an investment is like selling anything else, ie know what you're selling and who you're selling it to and find the right "who" for the "what" you're selling

At the end of the day, a VC is going to want to see a business model though.

It depends on the business and the VC. At this "seed" stage though, good VC's know that all business models are theoretical and good VC's are usually only concerned about meta-things like the founding team's resourcefulness, vision, etc. They eventually expect you to produce a return but they expressly have a very long time horizon so it suffices to display a mind for how that might eventually happen.

IMHO it's a red flag if a founder stubbornly forecasts a business model before product-market-fit or if an investor expects such clairvoyance.

948 sats \ 0 replies \ @dk 29 Dec 2023

well said! 👏

also, I’ll add that I see a lot of people say things like “VCs all do/believe/behave like X”.

It’d be like saying “all python developers believe X”!

VC is just a capital/partnership structure. People organize those structures and deploy the tool of capital in vastly different ways with vastly different strategies. There are also different definitions of “success” based on what outcomes/timeframes are modeled for the specific risk/return goals. These are often closely coupled to fund size, but not exclusively.

21 sats \ 0 replies \ @phaedrus 4 Jan

Exactly, even if he takes VC money, Damus will eventually need to make profit. VC people are not charity, they want their money back:-)

0 sats \ 0 replies \ @ek OP 28 Dec 2023

I have no idea how VC funding works

Ah, oh. I see I am still assuming too much even though I almost got fired once because I assumed too much, lol

Question is it better for him to build out the business model now without funding and hope it takes off fast enough to pay bills before his runway ends? Really sucks that Apple rugged his zap splits model, iiuc that was working great.

Now he has to launch an Android app and hope that hits cashflow velocity before the year ends 🤷

Mhh, I see. Yeah, Apple is becoming even more and more a walled garden. Feels like this is part of their business model: to stay the most walled garden ever created.

But I think it's not necessarily a bad business model. Just not one I personally would like to buy into as a customer who likes too much to tinker with stuff.

iiuc

til