

20VC: Buffer's Joel Gascoigne on The Moment The Founder Is No Longer The Boss, The Questions Founders Must Ask Their VCs and Why We Need A Spectrum of Different Financing Mechanisms Other Than VC
Mar 29, 2019
Joel Gascoigne, Co-founder and CEO of Buffer, discusses his journey from web developer to running a profitable social media management tool. He highlights the critical moments when founders risk losing control, emphasizing that fundraising decisions are more significant than many realize. Joel critiques the current VC landscape and advocates for alternative financing to ensure founder independence. The conversation also touches on team transparency and Buffer's future plans for sustainable growth and product diversification.
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Joel's Startup Journey
- Joel Gascoigne's initial interest in startups stemmed from discovering TechCrunch and witnessing others building companies from their computers.
- His first startup after college wasn't successful, but it provided valuable learning experiences.
Fundraising's Hidden Cost
- Fundraising can lead to founders losing control of their company, especially as investors gain board control.
- Many founders prioritize autonomy, so this loss of control can be a significant drawback.
The True Cost of Capital
- The cost of capital isn't always considered; founders should assess the long-term implications of giving up equity.
- Founders should inquire about investor time horizons, fund structures, and expected returns.