Bill Gurley

a lot of founders make is when you take venture capital, it's usually not just the A round.

There's usually a B round and a C round.

And your ownership is going to get way diluted.

And the number that the

The number one type of company that bigger companies would like to acquire are smaller companies that are tuck-in acquisitions, $20, $30, $50 million.

And the minute you take venture, that's off the table.

Because now the venture capitalist needs a much bigger outcome.

And so if you can, scrape by.

And I know it's hard.

Tito never took venture money.

He owns 100% of this massive business.

Wow.

And so if you can do it, try and do it.

And the big benefit of doing it that way is your ownership will be a lot higher.

Well, I suspect that the smaller entrepreneurs that are living hand to mouth on cash flow are pretty in touch with their unit economics.

It's the guys that raise $100 million of venture capital that lose touch with unit economics.

Yeah, it's just a matter of understanding what are the true variable costs associated with

the product or service that you're selling and being honest with yourself, even despite what the accounting might be the requirement for gross margin, but what are the true variable costs?

So that could include selling and customer service and all these things so that you know the marginal contribution, ideally from a cashflow perspective that you get with each turn of the crank.

No doubt.