ChannelAdvisor received $30M in May, 2007. Now they just got an additional $20M in funding.
Their cash burn rate is around $2M per month. Wheee! That would be fun.
That makes me think, what’s better: a small lifestyle business or a high risk, high reward funded business?
The decision is a function of the founder’s personality and skills. Do they want to spend their day setting company goals and persuading venture capitalists to invest? Or do they want control and slow growth?
A lot of times, the company starts as a small lifestyle business and becomes successful. Think eBay. Then the founder has to decide on an exit strategy. Think Pierre Omidyar choosing Jeff Skoll, and then Meg Whitman to lead his company.
To answer my own question, I guess there’s no “best” kind of company. They are just success or failure on a different scale.
I have a modestly successful lifestyle business. One day, I hope to grow the business enough so that I can run it rather than work in it. Halloween is the 3rd anniversary of eSeller Street, Inc. That’s my definition of success.