Avoiding the VC TrapMatt Haughey | Webvisions 2008

How to run a successful web

business you actually like, doing what you

love, and on your own terms

Defining some terms

Why talk about funding?

Paul Graham

Paul Graham

“You might as well be running a shoe store”

What does venture capital do right?

It funds innovation

Gets grown-ups involved

It fuels a cycle that lets really big ideas

take off

The downsides

Strings attached

Not the finish, just the begining

Investors want exits, not zombies

Too much

The Myth of the

Superstar

What about the great big middle?

2007 2008 2009 2010

Lifestyle Business

“Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a

foundation from which to enjoy a particular lifestyle.”

“Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a

foundation from which to enjoy a particular lifestyle.”

Lifestyle Business

“Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a

foundation from which to enjoy a particular lifestyle.”

“Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a

foundation from which to enjoy a particular lifestyle.”

Some ideas for running a successful

business online

Find your passion

Build the app you always wanted

Continually improve it

Be the best, most active user of the product

Start small,stay small

Keep your dayjob

Figure out a way to make it pay

Charge something

Do the math

$5 x 1,700 users x 12 months = $102,000/year

Free versionPro version

Everyone pays(but with a free trial)

Advertising, sponsorships, memberships,

donations

You gotta make it through the slog

Some examples

Web app model

Software house

Community model

Sole Writer/Designer

Conclusions

It’s 2008

Hardware: cheap

Software: cheap

Programming frameworks: plentiful

Chances you will make $1 billion: slim

Chances you will make $100k: good

Total funds needed to launch: $100/mo

Thanks.Questions?

Background photos used:cash: Tracey O http://www.flickr.com/photos/tracy_olson/

office building: *Solar ikon* http://flickr.com/photos/chunyang/2210171888/shoes: Kai Hendry http://flickr.com/photos/hendry/298879660/grownups: laffy4k http://flickr.com/photos/laffy4k/52061780/

strings: Meanest Indian http://www.flickr.com/photos/meanestindian/328065491/finish line: Chris Breeze http://www.flickr.com/photos/92833011@N00/270157428/

zombies: atp tyreseus http://www.flickr.com/photos/tyreseus/219645014/light bulb: greg westfall http://www.flickr.com/photos/gregwestfall/2049488135/

bigwheel crash: sloanro http://www.flickr.com/photos/rs/129806614/small bug: woodleywonderworks http://www.flickr.com/photos/wwworks/2313927146/

work desk: ten safe frogs http://www.flickr.com/photos/tensafefrogs/7393410/passion: torroid http://www.flickr.com/photos/torroid/2507357073/in/photostream/

webappschematic: jazzmasterson http://www.flickr.com/photos/jazzmasterson/3038597/bestuser: top pocket man http://www.flickr.com/photos/mightyjc/111784097/

treadmill: maHidoodi http://www.flickr.com/photos/mahidoodi/199747855/