Exactly How and When to Raise Money For Your Business | The Kevin David Experience
What's your opinion on like raising
money and kind of like injecting like a
huge kind of stimulus into a business
versus kind of like growing it
organically and maintaining control and
not kind of having those investors
so
i i can only you know share my own
experiences i've you know worked at
facebook that was funded a lot i think
almost a billion mint was funded
and then i did take funding on two of my
businesses but small amounts one from
naval who's pretty famous now the one
from andrew chen who's pretty famous
and
i've never really taken money i think
the best way to raise a lot of people
ask me is like how do you raise money
like i've never really raised all i've
had is i've created businesses that were
in hyper growth areas and then investors
came to me
but i generally think most people should
never raise because they use it as an
excuse and i only think people should
raise personally if it's very apparent
that you have an atm machine that you
put money in and you get twice the money
out
so if i came to you kevin and i was like
yo man appsumo we need more money if you
give us a million i could put it in and
generate two million then i think that's
the thing to go raise right uh but other
than that i think it's an excuse most
people have for not starting a business
right and i agree i think that there's
kind of like in my experience and i
always ask people this question because
it's just interesting to hear you know
really intelligent people give their
answers on that i think it makes sense
to raise in the case where it's like a
winner take all type of market like with
facebook for example i think it made
perfect sense but like there's some
markets where it's not necessarily like
that um and it doesn't make sense to
raise like a billion dollars and invest
it all into like marketing and hyper
growth internationally and things like
that what do you think about that
well i'm just trying to think of the
different companies that raise i think
there's many approaches of starting a
successful company you know you could
play out the scenario with facebook
where
were there competitors who didn't
fundraise as much and facebook was able
to destroy them and do better without
having to make as much money and the
answer's probably yes because you can
you know you can even look at like the
instagram experience so instagram wasn't
making any money raised i don't know if
they raised like 10 to 15 million
dollars but they had other competitors
like there was these other uh
other apps for photos but they cost a
dollar
and so you could argue because they were
able to raise and not have to make money
and sell it they really get the about
you know create a larger audience and
then sell it for you know a billion and
a half
so i think there's just different
approaches and preferences i think where
where i've just
personally my personal preferences i
don't want a boss
so and i think there's a lot of
decisions in our business that are
not as
you know revenue generating that an
investor at the end of the day they
don't like they're not there to like you
they're there to make money yeah
like if i invest in a company like
i've invested in five startups and i'm
there more to learn and be a part of
like companies that i love i only invest
in businesses that i use and i generally
pay for
um
but i'm not i'm not a typical investor
i'm like you better make my money i'm
like if they lose it's fine but most
investors like yo i put 100 g's and give
me that money
and so
it creates a different level of pressure
which maybe is even beneficial to some
businesses but it's not something i like
that we've been able to do more of
whatever we want
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