Avoiding the VC Trap
Matt 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 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.”

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 version
Pro 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/