Bootstrapping is the New VC
It’s worth noting that they’ve never raised VC:
I admire the way Blogdigger has diversified through the years and consistently sought out new niches within blog search. The digital media part of its business is what, in the end, differentiated Blogdigger from the crowd. It’s worth reading Greg’s story in full, below, as it provides an informative glimpse into how a small, unfunded startup has battled through 5 years and finally had a successful conclusion (well, we hope the price paid can be deemed a success). And remember that Blogdigger, like this blog, launched well before the web 2.0 hype began.
So while competitors such as Feedster have closed up shop, and Technorati flounders, BlogDigger doesn’t have to worry about these problems and they can exit on their own terms.
Specifically, they never were able to overestimate the market and instead won their revenue at tortoise pace instead of crashing into the wall at a hare’s pace.
I have to admit, that if you can use VC correctly, it’s a valuable tool. But all too often the entrepreneurs over estimate their own sense of self worth and the VCs are too easily convinced that investing in a lemon is a good idea.
Of course, the Founder/CEO has nothing to lose. As long as they have 1 in 10 Youtube style exit’s they’re more than breaking even. This explains why serial entrepreneurs can raise round after round while continuing to fail.
I’m expecting Technorati to close up shop anytime now. Either that or they’ll have to recap the whole company and start with a fresh round of VC.