The Problem With VC-Funded Startups
Jason Fried is the co-founder and President of 37signals, the Chicago-based web-application company. He has co-authored all of 37signals' books, including the upcoming, "Rework," as well as the 'minimalist manifesto,' "Getting Real: The Smarter, Faster, Easier Way to Build a Successful Web Application" He also helps to maintain the company's popular blog, Signal vs. Noise, and is regularly invited to speak around the world on entrepreneurship, design, management, and software.
Question: How is your company's approach different from that of other firms in Silicon Valley?
And I should say that one of the really cool things has been "Rework" has been received, our book, by a lot of people all across the spectrum. So we knew technology companies would like it, but we’re hearing from, you know, people in their 80s, we’re hearing from—we heard from some hairdressers actually who’ve read it and loved it. A lot of restaurant owners from big huge manufacturers. There’s a spring company out in Chicago that just sort of, they make springs. They’re like an industrial manufacturer and they’re like, "These ideas are great. We’re going to try working on some of these." And other people have written this and saying, "I’m glad I’m not the only one who thinks this way. You know, I’ve had this business for 20 years now making this, that and the other thing and we’ve been working this way too, and everyone’s been telling me we’ve been crazy." So it’s great to sort of hear from all these other different people in different industries who think these ideas do work for them as well.
Recorded on July 22, 2010
Interviewed by Peter Hopkins
Raising money upfront puts you in the wrong frame of mind. A ventured-backed company has to spend money. A self-funded, bootstrap company has to make money.