Outside Money and Irritable Bowel Syndrome

Robert Sapolsky, the author of Why Zebras Don't Get Ulcers promotes the theory that irritable bowel syndrome (IBS) stems from our ancestors' need to quickly lose weight (by having a nice BM) when under high-stress (like running away from a pack of hyenas on the savanna). Similarly, many startups hinder their ability to run like the wind by having a 32 oz steak dinner right before the pack of hyenas comes to chase them. And people wonder why so many startups fail! Certainly there are capital-intensive startups that will need that steak - but those startups often don't eat the whole steak themselves but use it to trade for actual infrastructure (like a bicycle) and then get on it to race across the savanna.
We see a good example of the 'eat light' strategy from 37Signals:
Yeah. We've gotten quite a lot of VC calls. But one of the things we're seeing that we really don't care too much for is that way too many companies are taking money when they don't need it. And the whole idea we had was that having too little money is a great way of getting great product, because it's a way to get focused.
So we have definitely said to ourselves, "We don't want any outside money. We actually don't even want to grow our team." We're trying to design our products in a way that they can scale with more users without us having to scale as a company. So, through Signal vs. Noise, we're trying hard to deliver a pushback to companies that feel like they have to hire a bunch of people as early as possible and to take money to realize their vision by saying, "If your vision of your product costs a million bucks to make, try rescoping that idea in your head so it fits in $100K and get it out there earlier. Instead of having a 1-year product cycle, what could you do in 1 month?"
And sure, that doesn't work for every company, but in the web age, it works for way more companies than are trying to.
- From David Heinemeier Hansson's interview in Founders At Work: Stories of Startups' Early Days by Jessica Livingston
For extra bonus points, listen to Sapolsky's hilarious lecture on the subject (m4a quicktime file).
20 Feb 2007 Matt Jaynes 0 comments




Those pink fishnet stockings sure were hot when you took them out of that crisp new package. But man, when you saw your aging drama teacher wearing the same ones with bulges in all the wrong places, you almost lost those tater-tots you ate for lunch. You ran to the bathroom and tore them off - but wait, you didn't shave your legs, and it was cold outside, so you grudgingly pulled them back up and hung your head as you walked through the halls the rest of the day in misery.
For example, if you know nothing about 'Saturday Night Fever' and I tell you that it's a 70's disco movie, you'll be able to visualize it immediately. Why? Because you know all those things that are associated with the 70's - the hairstyles, the clothes, the lingo, etc. There is a fuzzy set of characteristics that generally define the 70's. So I just tell you the era of the movie rather than a long description of the hairstyles and clothing.