Mixing metaphors for a minute, Jordan achieved success through ‘bootstrapping.’ He played for one team, overcame losses and became a six-time Champion on his own terms. On the other hand, James figuratively accepted “VC Funding” to win when he had to switch teams twice to play alongside other superstars.
It has become a bit cliché, but back when The Social Network came out in 2010, Justin Timberlake delivered my favorite movie line of all-time, “A million dollars isn't cool, you know what's cool…A billion dollars.”
That line hit home with entrepreneurs because social media and digital technology was the new frontier, the new gold rush and the possibilities were endless.
When an entrepreneur takes that leap of faith, quits their steady job and starts a business, they typically have a clear vision of what their product or service will be -- prepares to launch a company they have a firm understanding of what their product or service will be.
Figuring out how to fund their new venture is another issue entirely, and one that keeps people up at night. There are many pros and cons to weigh when deciding whether to self-fund or seek outside investment and it is a difficult decision.
As the CEO of PK4 Media – a digital advertising startup I founded in 2009 – I live this struggle first hand. Having grown up in Silicon Valley the son of a Venture Capitalist, I see both sides of the issue but have consciously self-funded.
Here are the top 4 reasons entrepreneurs should reject VC funding:
While most entrepreneurs begin with a clear idea, the decision of how to financially make that dream a reality is a universal struggle. While there are two sides to every coin, above were four solid reasons to reject outside funding. There is more than one way to succeed, but if you can succeed through self-funding, you may just become the Michael Jordan of your industry.
About Tom Alexander
Tom Alexander is the Founder and CEO of PK4 Media. Founded in 2009 as the advertising industry’s first Omni-Channel Media Company, 15-time award-winning PK4 Media uses proprietary technology that enables brand campaigns to serve and collect data from 200 million unique consumers across an unprecedented eight digital channels: Desktop, Mobile, Tablet, CTV, VOD, In-Mall, In-Theater and Digital-Out-Of-Home.
Headquartered in Los Angeles, the company has a click-through rate four times the industry average and a 93% client retention rate with world-class clients including: Activision, Amazon, Bacardi, Esurance, Ford, Honda, KitchenAid, Lionsgate, Microsoft and Procter & Gamble.
Alexander has led PK4 Media to become a two-time Forbes Most Promising Company, three-time Inc. 500/5000 winner, Deloitte’s Technology Fast 500 winner, among others.