DISQUS

Aditya Kothadiya: Observation on How a Self-Bootstrapped Startup Vs a VC Funded Startup Spend Money

  • Sushil · 1 year ago
    I guess its always easier to spend someone elses money!
  • snehal · 1 year ago
    Adi, I think you are comparing 2 different breads here. There are startups that make awesome profits with good technology and there are startups that have huge mind share, are way too cool and consumer centric with killer technology.

    Both solve the basic problems but the ones with bigger mind share are the ones you would crave to visit every day. Such companies really need to go a step further to retain employees, attract /steal them from their competitors which is certainly not an easy task. Remember, for them employees are the biggest asset (as you already know they are burning money :)) The least they can do is make their employees as comfortable as possible. A one time expense of 2000$ per employee is peanuts to achieve this..
  • Aditya Kothadiya · 1 year ago
    @snehal,
    I agree with you. That's why I said, there might be some truth in "keeping employee happy" part. But those profit making companies also want the best talent and want cooler product and more users.

    Yes, sometimes $2000 or so look peanuts. I agree. But at the same time, think about that money when it's going from your pocket. Then we think twice before spending it.

    The bottom line is, we just have to keep this thought in mind that VC money is not there to spend. We should treat it as our own money. At the end, if buying expensive laptops make sense, then sure, go buy it, but just make sure we think twice before it.
  • Varun · 1 year ago
    I liked this post, comments are as follows:

    In the long run, it is seen that those who spend wisely are better to deal with economic downturns. Their employees are never accustomed to spoiling comforts.

    On the other side, many geek type or creative type employees value coolness. Thus, this spending can be seen as justified for business to function.

    There can be cheaper alternatives to keep these employees happy as well.

    Finally, one has to see an unbiased view on company priorities at that stage, and make the decision.

    Thus, the word 'wisely', and not 'frugally' is very aptly used in this blog.

    On the whole, I agree that self funded startups are wiser with spendings and take less financial risks.