I just wanted to take a second to thank my three readers for fourteen years of support.
My first post on this blog happened on this date in 2003, and when I wrote it I had little idea I’d still be doing it almost a decade and a half later.
It does seem weird that I still consider OpenNMS a start-up. We took a much different path than a lot of other companies, focusing on our customers instead of fundraising. With our mission statement of “Help Customers, Have Fun, Make Money” and our business plan of “Spend Less Than You Earn” we’ve not only managed to survive but thrive, and both the company and the project have never been stronger. While we are always looking for good investors, this allows us to pick just the right partner.
I’d like to make the point that success isn’t the same as raising a round of financing. Quite the opposite: raising a round should be a byproduct of success. Using fundraising itself as a benchmark is dangerous for the entire community because it encourages a culture of optimizing for short term showmanship instead of making something people want and creating lasting value.
I believe founders, investors, and the tech press should fundamentally change how they think about fundraising. By deemphasizing investment rounds we would have more opportunity to celebrate companies who develop measurable milestones of value creation, focus on serving a customer with a real need, and generate sustainable businesses with good margins.
Optimizing for funding rounds is just as unproductive as optimizing for headcount, press mentions, conference invites, fancy offices, speaking gigs or top line revenue growth with massively negative unit economics.