Debt Free Tech Startups


3

Does anyone know of any Debt Free startups. Am wanting to ask a few questions of them since I am looking to start a company, but hate debt since it clouds my judgment. I am wanting to learn from startups that started debt free and have stayed that way.

I hope this is an okay question to ask here.

Company Debt

asked Sep 24 '10 at 08:14
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Percent20
322 points

4 Answers


5

Avoiding debt is a pretty simple formula, have income greater than your expenses. To do so means you will have to do one or more of the following though.

  1. Have a startup that makes money immediately (difficult)
  2. Have the startup perform additional work such as consulting to pay for your main game
  3. Work on it only on your spare time on a shoestring while working a normal job
answered Sep 24 '10 at 13:45
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Craig
219 points
  • Definitely an easy formula, but hard at the same time since not a lot of people do it. I want to know their experiences. – Percent20 9 years ago
  • Totally agree (I'm doing #3 and am profitable since year 2 of the company) – Nir 9 years ago
  • Or take outside money as investment. – Tim J 9 years ago

3

My company has been in business since 2002 and has been profitable every year with no debt. I started off consulting while at the same time building a product, getting contacts in the industry and growing the customer base. As our software matured and the revenues grew, I slowly phased out consulting work.

We are a tiny firm (4 employees) but I like it that way and we do okay revenue-wise. Like you I am very debt averse and don't like outside investors (or partners) telling me what to do and diluting my equity. It is a much slower way to grow your company and requires lots of patience (and luck).

answered Sep 24 '10 at 17:12
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Oleg Barshay
2,091 points
  • Being successful with outside investing take luck too! – rbwhitaker 8 years ago

1

ROb Walling has written a book and loads of articles on boot-strapping business. His blog at http://www.softwarebyrob.com/ is well worth a look.

answered Dec 12 '10 at 19:18
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Mark Stephens
976 points

0

Talk to Jason Cohen about how he did it with his previous startup (Smart Bear).

answered Dec 12 '10 at 13:47
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Rahul
1,612 points

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