Parr: Raising outside capital permanently prevents founders from repurposing agency profits
Sam Parr · How To Grow A Small Agency Into A Billion Dollar Company (#414) · Feb 2, 2023 · at 14:08
Sam Parr discusses Andrew Wilkinson's bootstrapping of design agency MetaLab, arguing that avoiding venture capital gave him the freedom to redirect profits into founding Tiny.
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“The second you raise money, that, that your cap table is one of the few things that you can't reverse, or it's really hard. And he didn't raise money for a company that, MetaLab should not have raised money. And it did not raise money. And because of that, he was able to use the profits to invest in shit versus if you raise money, they're like, no, don't use those profits to do other things, reinvest them and make this thing bigger.”
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