Multiple Round cursancing of the adventures can be wrong for your startup

There is a script usually accepted in Silicon Valley: Identify an idea of starting. I sell a piece of your company to lift the capital of adventure. Make sales. Add capital more than adventures of adventures, and make you seller. Repeat until the company goes public, or existed existed, hope for billions in any way.

But that if you didn’t have on a fantastic of fundraising after taking a first time? And if you struct your company to express profitable through the slower, sustainable growth, rather than reverse – as a prophet’s growing – as many vc companies

This is the question that pukar hamal ai, founder and CEO of SECURIPAL AIR, ask after the series of $ at 2021 and, a year, almost run out of money. The round has been driven by the Alleft Chaft of David sacks, with Andreessen Horoowitz’s Martin Casado and Okta Co-founder of Frederical Mapdic.

“I started the company of his 2020’s company. It’s my second company I have founded,” he said on the techcrough equity podcast this week.

The previous company, which sold via an acqui-enisata, he had lifted his first capital in front of the Fit production market, he said. It is enough common. Founders often grow before they have a product they know clients pay well.

In retrospect, hamal described that the decision as their great “mistake.”

So for the safety, has made the reverse. I am looking forward to the company has mentioned $ 1 million rent to arr, that took about a year, and then he just got a single part and only.

The security uses ai the durity of the speed company’s security, which occurred in every large enterprisational transaction when you sign new contracts. Security of Security Promise of Security by the months of days or even hours, helping the companies of saving money on the process while closing the business. Has big name customers as we absorable, pigs, pigs, langa, and grammar, among others.

But in the 2022, he made a crisis. Interest rates are raised and slap the capital city market. The funds growth would be hard. “We are burning very capital,” he said. “We were, as, 14 months of running out of money.”

It was a waking call. Hamal had to kill drastically, what did a big layoff mean. It was so painful, he said he voted to do things. “We arouse our way, and we tried to conceive the company to the cash pause of cash, hoes positive positive,” he said.

Even when in the money 2025 vc is running out again, especially from the start of thei “, we have not raised another,” he said. The reason? He looks like the money VC comes with his own price tag.

“More razy they grow, more expectations that let us go to the company control, the more presentation we are inserting you a whole that could not travel”, he said.

“For capital of adventure, what matters is in growth:” he said. For some investors, the growth of the redge rapidly is more important than improved rough margin, he said.

This means a company can fall deeper in the red even while selling more. The VC trusts that the founders have to understand the next proficiency. Until then they can keep the funds. And if they can’t, the company could not survive.

Hamal wanted what to describe as “durable growth” for security: Low and solid. If the sale has been limited to a bit of implementation in any time, their team could ensure that all customers were good on board, even for their homes.

I didn’t mean to have the fast sales just to have customers that do not use the product and chorn have arrived the renovation time. “This story happens all the time because there is so much pressure on companies grow”, he said.

By amateur amateur there found that slow arring can lead to “healthy margins, large cash college.”

Hamal is clear that it is not recommended against the capital of relate to. Other startups can have to keep the growth and pursue the arr. It’s not even shouting another round for security. He only wants more founders to think of slow, alternatives raised, alternatives.

“I raised the capital of adventurant. And I didn’t get it again because what you are trying to do is to place the business in a position where you need to be aptly”, he said.

Listen to the whole conversation on the Iquity podcastthat includes hamal suggestions on how to find capital out of business.