This is our third year in business. We were small but profitable in Year 2, and now that we’ve figured out how to make money, we are ready to accelerate and grow. I have been told directly and indirectly that our business, despite its recurring revenue stream and customer growth, lacks the sex appeal to interest VCs.
We have seen competitors come and go, but now we are starting to see more companies enter this space (none appear to have substantial financial backing either). Although their messaging is good, the business is tough – our 2+ years of experience in this market has provided some great learning, which gives us somewhat of an advantage.
Having an investor’s financial backing would allow us to do more, grow more, and I think would help me sleep a little better. I’m a solo founder, and I chose not to involve friends because I value my friendships too much and didn’t want to drag them down this crazy idea rabbit hole that I had. The company has been bootstrapped to-date.
We’ve been approached by a legit Chinese investor syndicate recently, and they seem very interested, with more of a long-term outlook than what I’ve seen from US-based VCs.
Is taking on foreign investment a viable path to take? Where did the US investors go, the ones who want to profit from helping a growing business grow even more?