Topic · 4 threads

Alternative Capital

Venture capital is one option, not the default. These threads make the case for the alternatives: bootstrapping, crowdfunding at scale, tiny angel checks, and capital structures matched to the business you actually want to build.

Venture Is Binary: Why VC Math Breaks Good Businesses

Wilkinson, who built Tiny to hundreds of millions in revenue without VC, explains the structural problem with venture money: in the VC's portfolio math you're either a zero or a billion-dollar company, which forces risky bets on companies that could have been excellent linear businesses.

Alternative CapitalFundraising StrategyAny Stage Read the breakdown

Who Writes $1K Angel Checks, and Why Founders Take Them

Yin unpacks the rise of tiny angel checks: who writes $1K checks, why they aren't a waste of cap table space, and how operators-turned-micro-angels change early round construction.

Alternative CapitalClosing the RoundPre-Seed Read the breakdown

How to Raise a Crowdfunding Round, by the Founder Who Raised $5M in 12 Hours

Lavingia's post pointing to his 'How to Raise A Crowdfunding Round' guide, drawn from Gumroad's landmark March 2021 Reg CF raise: $5M in 12 hours from 7,303 investors (5,800+ first-time angels) at the newly raised legal cap.

Alternative CapitalFundraising StrategyAny Stage Read the breakdown

SC Emerging Managers: Chamath Funds New Investors from Nontraditional Backgrounds

Chamath announces Social Capital's Emerging Managers program: money, training, and community for aspiring investors from diverse, nontraditional backgrounds, the other side of the fundraising table, on who gets to allocate capital.

Alternative CapitalFundraising EthicsAny Stage Read the breakdown