I know I’m linking to Guy twice in a row, but his latest post makes it clear that he fully groks the Credit Card VC ethos:
Because of Truemors, Ive learned a lot about launching a company in these Web 2.0 times. Heres quick overview by the numbers.
- 0. I wrote 0 business plans for it. The plan is simple: Get a site launched in a few months, see if people like it, and sell ads and sponsorships (or not).
- 0. I pitched 0 venture capitalists to fund it. Life is simple when you can launch a company with a credit-card level debt.
Now, Guy will tell you that this is not the next Microsoft or Google, it’s a service that may grow on its own and maybe someday some bigger organization will want to add it to a portfolio because of the user base or whatever, and so it may have a nice exit someday.
But the best part, I think, for Guy is that when people send him business plans about how they really need to have $1 million Angel Round so that the team can develop a prototype, he can look them right in the eye and say, “Why? I launched a site for $12,107.09, and within two weeks it had 315,000 hits in Google. Why do you need 82.596 TIMES the money I spent to do what you want to do?”
They better have a darn good answer to that question.