After five years of funding our company entirely through client revenue (aka bootstrapping), we are now ready to take on external investment. Why now? Here’s why:
Other People’s Money
Earl and I have seen too many cases when a company took money too early – before they knew exactly what the company was really about. This has worked very well in some extremely rare cases, but mostly it’s a recipe for excessive spending on experimentation and learning about what a company should be doing. At GDG, we were adamant that we weren’t going to experiment with Other People’s Money. We were going to learn our lessons on our own dime. And now that we have, we’re confident that any capital we take on, will be Other People’s Money that will be used effectively.
Product Market Fit
Having learned our lessons, means that we’ve now found product market fit. We know our market, what the right products are, how to price them, how to deliver them, and how to support successful clients that generate a lot of value from our products. We are rightly seen as industry innovators and leaders, and we want to take that success and amplify it to benefit many, many more great companies and givers. The buzzword for amplification is scale, and it takes capital to scale. Now that we have product market fit, we’re ready to scale.
Iteration and New Products
In addition to wanting to accelerate what we’ve already done, we’re not content to just replicate a successful model. We want to continue innovating on our products through a continuously iterative process. At the same time, we’re also ready to build and deploy new products. There is huge potential not only in CSR, but in creating tools that serve givers. I don’t want to give too much away, but the tools we’ve been building for CSR have a broader appeal than the Fortune 500 market we’re serving now, and we want to build new products for a broader, multi-sided marketplace. All this equates to a quicker rate of R&D than what an organic growth budget can accommodate and to achieve it, we need capital.
The Best Team
The people at Good Done Great are some of the best out there. We’ve hired some great people recently. To execute on our plan, we’re going to need to continue hiring great people at a faster rate than what organic growth can provide. Our team is the most valuable resource we have and to grow this team, we’re going to need capital.
We’re excited to take on additional funding and benefit from the experiences our new investors and collaborators will bring. This is a big step for us, one that we take with lots of confidence in our team’s ability to deliver great results, both for our current stakeholders and for our future shareholders.