Comment by insanitybit
2 years ago
> why would you need VC money to build an app after you've already spent several months doing it?
As someone who raised VC money for a SaaS, the answer is that operating a SaaS requires employees. I had two choices - attempt to operate it myself and incur a lot of personal costs, or raise money to pay for those operating costs at no personal cost.
Contrary to the other posts, the goal was in no way to operate at a loss for a long period of time or to get some sort of exponential growth at all costs or whatever. It was literally "do I personally want to spend 10s of thousands of dollars and attempt to operate a complex system 24/7, or do I want to take literally 0 financial risk and be able to pay other people to help me".
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