Small teams making $10M annually might beat most VC-backed founders

And probably they're probably doing better than most venture backed founders, right, who are illiquid, who are stuck.

7:32 / 8:02

if you're making if you're, like, five people making 10,000,000 a year every year, that's pretty good. And probably they're probably doing better than most venture backed founders, right, who are illiquid, who are stuck. And, whether whether they can or can't raise, but it's just tough and you have total flexibility and control. So then are there new capital structures that can help scale these types of companies, whether it's, like, revenue based financing or things like like that. So these are some of the things I've been piloting with, and I know we chat about at this old village as well. Can you bet back founders in this earliest of stages in some sort of founder friendly structure

About this clip

Henry Shi explores how small, profitable teams of 5 people generating $10M annually might actually be better off than illiquid venture-backed founders. He discusses whether new capital structures like revenue-based financing could help scale these businesses while maintaining founder control and flexibility.

Why this clip

Challenges the conventional wisdom that venture funding is always better by highlighting how small profitable teams can outperform VC-backed founders.

7:32 - 8:0231scontrarian take

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