There's been a lot of chatter on this blog and others recently about the merits of bootstrapping a business, with some of the discussion taking on a bit of an anti-VC perspective. That's why I found Rand Fishkin's recent writings on venture capital so fascinating.
In one of the more candid blog posts I've read from an entrepreneur, the SEOMoz co-founder lays out the positives (accountability, connections, long-term thinking, etc.) and the negatives (loss of control, time suck, dilution, etc.) of taking on venture capital. But, at the end of the day, Fishkin says he's glad he took outside money. (And it turns out, he's now considering another round of financing.)
Fishkin -- whose company is backed with $1.1 million from Ignition Partners and Curious Office Partners -- writes:
Outside capital made me a better entrepreneur, focused our company more seriously on the things we needed to do and made us more accountable and metrics-driven. Some companies feel that pressure internally and can build those processes without external help. We needed that external pressure and it's been remarkable.
It's a long post, complete with charts, graphics, bullet points and even a couple photos of Fishkin's handwritten notes. But it is well worth the time for anyone who is thinking about going the venture capital route, or for those who just want to get a better sense of how to operate a startup company.
Fishkin even offers a detailed self analysis of things he needs to work on, writing things like: "My stubborness is sometimes useful, but I need to do a better job of letting go when the situation warrants."
It's also nice to see a startup company so publicly display some of the metrics around the business.
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