Typesense Company's Decision Not to Raise Capital
TLDR Jason shares the decision of Typesense not to raise capital and remain customer-revenue funded, sparking supportive discussions and suggestions for alternative funding methods like venture debt from Alex. Other users also express their admiration and support.
Alex
Fri, 04 Feb 2022 01:15:45 UTCI totally agree with the points made in your article. Have you thought about growth equity firms or venture debt? Investors who concentrate on deep tech would also align really well with your product
Jason
Fri, 04 Feb 2022 01:18:50 UTCI've read anecdotal stories that growth equity firms have even higher expectations of their returns on investment and expect well defined progress on metrics, though they do tend to write much larger checks.
Jason
Fri, 04 Feb 2022 01:19:30 UTCI've only heard of the term venture debt at a high level, don't know too much about the incentives / mechanics for investors
Alex
Fri, 04 Feb 2022 01:44:49 UTCventure debt would probably be a great fit for TS — worth looking into!
Alex
Fri, 04 Feb 2022 01:45:37 UTCWith GW, yeah, but they also give a way longer timeframe, and if it doesnt work out it doesnt work it as they inevitably will have a minority stake
Robert
Fri, 04 Feb 2022 03:44:58 UTCJason, as a solo developer developing a new project that uses Typesense, I just want to say THANK YOU for creating and continuing to update Typesense in a free, developer friendly, and open source way. I read your blog post and am thrilled to hear that Typesense will remain free, at the moment, from the curse of venture capital. Thank you.
Jason
Fri, 04 Feb 2022 04:05:59 UTCThank you for your support Robert! :pray:
Fulvio
Fri, 04 Feb 2022 08:40:34 UTCI take my hat to you guys, Congrats and Good Job.
A
Wed, 09 Feb 2022 00:31:20 UTCWas / still going through the VC discussions myself, and this was refreshing to see. I’m a happy TS customer and hope to scale our usage as well.
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Jason
Thu, 03 Feb 2022 18:42:24 UTCOver the last 18 months, we’ve had conversations with over two dozen VC firms who cold-reached out to us. We’ve also had conversations with about a dozen customers and friends who expressed interest in investing in Typesense. To everyone who has reached out to us about investing in Typesense, I really appreciate your support :pray: While some of these conversations almost convinced us that we should be raising funds, after a lot of soul-searching, our current state of mind is that we want to build a business around Typesense that’s primarily funded by customer revenue, rather than external capital. We’ve been bootstrapping Typesense over the last several years and I’m thrilled and grateful to say that we are currently fully funded by revenue from paying customers :tada: So leaving the monetary aspect aside, here's why we don't want to raise capital: