Getting off the VC train is becoming popular among VC-backed founders, especially in the $1M to $10M ARR range.
VC-backed companies at this stage have a viable product, paying customers, and a clear go-to-market strategy, but often need additional elements like a full product suite, a defined market category, a scalable sales process, and a complete management team.
VC-backed founders seek incremental capital to fill these gaps, but relying on VC funding can be risky due to market volatility and changing investor priorities over the next 12 to 24 months.
Getting off the VC train early can reduce risk and stabilize the business, but it may also limit the potential for venture-scale outcomes, creating a misalignment with VC shareholders' interests.