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I started a new company with my cofounder 6 months ago

I started a new company with my cofounder 6 months ago. We focused on what people wanted, built a manual solution then automated it. We have 60% margins and a system ready to scale. We are thinking of avoiding investments. I am not sure if we are in a new moment in time where investments are something people do because of what used to be the best to do. And I am not saying avoid blitzscaling but do it without external capital. The hypothesis is that a small team, Claude Code subscriptions, apis and automation/code are enough to make it work via profit reinvested from sales. And it will be actually a competitive advantage because of removed costs, mostly from coordinating a lot of humans and having outside forces pulling in different directions.

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https://xcancel.com/eastdakota/status/2062860530360959273

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LR

Buy a few GPUs so you can skip the Claude subscription, and never have to worry about rate limits, privacy, or refusals. Will pay for itself with a small team in a few months. I mostly work on custom from scratch Linux operating systems and packages across dozens of languages. I do 100% of my AI work today using two AMD r9700 pro GPUs on a 10yo pc I pulled out of an old arcade machine. AI subscriptions only make sense for people who cannot build a basic home computer.

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JU

> enough to make it work via profit reinvested from sales. Yes, this is just called running a business.

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WE

This is what I’ve been doing. I’m not even against external funding, I just see it as instrumental to the ultimate goal of building a sustainable business. Venture capital is basically a super high interest loan so it’s only something you want to take when and where it can be effectively deployed. Most other founders/business owners and investors I know don’t see that as a controversial statement (that it makes no sense to see access to capital through a scarcity mindset, when it is factually accessible) but because most customers or potential employers aren’t one of those, it’s been a problem because this isn’t what you’re “supposed to do” and so they read into it from a social/legitimacy angle. Regardless, it’s quite rewarding IMO and I highly suggest it to people with the means to pursue that path. I don’t see why people get so worked up on the whole VC thing, at the end of the day it…

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