Today I came across this tweet highlighting the fact that in Silicon Valley people tend to praise entrepreneurs that raise a lot of money vs entrepreneurs that make money (especially those that make that money without VC funding). The problem with this is that it incentivizes founders to raise money and to raise it from certain people rather than focusing on building a great company.
Why does this matter?
This tweet got me thinking on why do I want to one day start a company. Am I interest in the process or the outcome? Ideally I should be interested on both but I should be careful of not caring too much about either of them. Hopefully this short essay serves as a reminder to my future self that building companies should be about producing a successful outcome while enjoying the process and nothing else. I shouldn’t obsess over the outcome nor should I spent all my time thinking about every step I take. Everything at its time.
Although I agree that some people in Silicon Valley tend to over-index on funding and investors (at least in my short-lived experience), I still think that great entrepreneurs will be able to know better and look beyond the press they get and their expanded rolodex. If anything those things are a means to an end. Getting all this press and extended network can be a great way to amplify your message and fulfill your mission.
It’s true that we celebrate funding rounds because it is what companies make public more frequently rather than user or revenue metrics. The question then is what can be a better proxy for a company’s health and progress and could we get entrepreneurs to share those numbers?