The article title is accurate, the one in HN right now is not.
The point was that they did YC and seed round but didn’t raise funding after that. Traditionally startups raise every 18mo and have raised A,B,C,D etc in ~10 years and before hitting $5B valuation.
Even with the latest round, it was a secondary sale, so not dilutive raise. Some investors sold shares to other investors but no new shares where created.
Avoiding that “vc hamster wheel” is that you avoid the conversations, meetings, fundraise roadshows and dilution every 18mo or so. So I think Zapier is an interesting example of a startup choosing a different path. Not purely bootstrapped or traditional vc backed company.
This will work out very well for YC as well as it means their shares were not diluted. Overall it is a huge win for everyone at Zapier and their early investors, job well done!
The point was that they did YC and seed round but didn’t raise funding after that. Traditionally startups raise every 18mo and have raised A,B,C,D etc in ~10 years and before hitting $5B valuation.
Even with the latest round, it was a secondary sale, so not dilutive raise. Some investors sold shares to other investors but no new shares where created.
Avoiding that “vc hamster wheel” is that you avoid the conversations, meetings, fundraise roadshows and dilution every 18mo or so. So I think Zapier is an interesting example of a startup choosing a different path. Not purely bootstrapped or traditional vc backed company.