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E32: Why I Wrote a 350-Page Free Ebook Against Everything Silicon Valley Teaches

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Manage episode 514926039 series 3682696
Content provided by George Pu. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by George Pu or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Why I wrote a 350-page free ebook that goes against everything Silicon Valley teaches about startups.

The consulting-first model that works for the 99.95% of founders who will never raise VC - and why the traditional advice is poisoning young entrepreneurs.
The brutal reality nobody talks about:

  • Only 0.05% of startups ever raise VC funding (5 out of 10,000)
  • Yet 100% of startup advice assumes you will raise millions
  • 3 out of 4 VC-backed startups never return cash to investors
  • 75% of US VC money goes to just 3 cities: SF, NYC, Boston

My personal wake-up call:

  • Spent 6 years following YC playbooks, reading Zero to One, trying to raise capital
  • Applied to YC twice, got interviews both times, rejected after
  • Sat in Waterloo dorm room as 19-year-old immigrant with zero connections
  • VCs told me: "Come back with more traction" or "Move to SF"
  • Realized I was reading a Ferrari manual while riding a bicycle

The lie I bought into for years:

  • Thought raising capital was THE path to startup success
  • Believed I wasn't good enough when I couldn't raise
  • Tried to optimize for VC metrics instead of customer problems
  • Almost went bankrupt following Silicon Valley's "build first, charge later" advice

Chapter 1: Why most founders fail (and why you think it's your fault):

  • The 0.05% lie - all resources written for the 0.05% who raise VC
  • The geographical trap - if you're not in SF/NYC/Boston, you're fighting for scraps
  • The assumption trap - books assume you have Stanford degree, $2M to burn, US visa
  • System isn't broken - it just wasn't designed for 99.95% of us

Chapter 4: The revenue lie - why "build product first" almost killed my company:

  • Started SimpleDirect charging $29/month thinking it was "smart positioning"
  • Had 20 customers = $600 MRR but costing $2,000/month to support them
  • Paid sales team thousands monthly to close $29/month deals (insane math)
  • Customer told me he pays $12,000/month for Google Ads consulting
  • Switched to $2,000/month consulting model - 5 customers = $10,000 MRR
  • Cost to deliver: $3,000/month = $7,000 profit vs. losing money before

The consulting-first model that actually works:

  • Start with value proposition, get paid through consulting while learning problems
  • Validate with real money instead of surveys
  • Build product AFTER understanding customer needs from paid consulting
  • Revenue first, product second - build from position of strength
  • Don't need to quit your job to start (friends at Apple/Google can build too)

Why customers pay 67x more for consulting vs. product:

  • Accountability - they want someone on the line if things go wrong
  • Personalized onboarding and handholding vs. self-service software
  • Service model beats product model for early-stage validation
  • Customers make rational decisions based on projected value created

Chapter 11: The 30-year mindset - building for decades, not exits:

  • Traditional VC path: build fast, scale aggressively, exit in 5-7 years, start over
  • Most founders who exit get scraps after liquidation preferences
  • Starting over in your 40s after "successful" exit - loss of purpose
  • My model: Berkshire Hathaway for tech - own 100%, never sell, compound forever
  • Stack profitable businesses, reinvest profits into more businesses

Why the VC game isn't designed for most of us:

  • VCs optimize for their outcomes (1-2% management fees), not yours
  • They need exits in 5-7 years for their fund structure
  • Their advice is written for their benefit and the 0.05% who can play
  • Nothing wrong with VCs - their game just isn't YOUR game

The book details:

  • 13 chapters, 350 pages (currently Google Doc draft v0.0.3)
  • Completely free, always will be free
  • Real stories, real numbers, real mistakes so you don't have to make them
  • Comments open for community feedback and collaboration
  • Final version launching in 1-2 months as PDF and audiobook

Three chapters that will change how you build:

  1. Why most founders fail and why you think it's your fault (the 0.05% lie)
  2. The revenue lie - why "build first, charge later" is poison for bootstrappers
  3. The 30-year mindset - ownership beats valuation every single time

Who this book is for:

  • The 99.95% who will never raise VC
  • Bootstrap founders and consulting-first builders
  • Founders in Toronto, Arkansas, Oregon - anywhere but SF
  • Freedom-over-growth founders who want to own 100%
  • College students who deserve truth before wasting 6 years like I did

Red flags you've been poisoned by Silicon Valley advice: Thinking you need to quit your job to start, believing raising capital = validation, optimizing for VC metrics instead of customer problems, assuming you're not good enough because you can't raise.

Bottom line: The startup advice industrial complex is fundamentally broken. It's making people afraid to start companies while pretending that everyone will raise VC when 99.95% never will. This book is the antidote - the consulting-first playbook for building profitable, owned, compounding businesses you never have to exit.

Read the draft (Google Doc with comments open):

https://docs.google.com/document/d/114epRAQ34iNeI2QYjTf88V6p82GxchRTz-3pvcIalQY/edit?usp=sharing

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X

Full episodes: founderreality.com

Email: [email protected]

  continue reading

34 episodes

Artwork
iconShare
 
Manage episode 514926039 series 3682696
Content provided by George Pu. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by George Pu or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Why I wrote a 350-page free ebook that goes against everything Silicon Valley teaches about startups.

The consulting-first model that works for the 99.95% of founders who will never raise VC - and why the traditional advice is poisoning young entrepreneurs.
The brutal reality nobody talks about:

  • Only 0.05% of startups ever raise VC funding (5 out of 10,000)
  • Yet 100% of startup advice assumes you will raise millions
  • 3 out of 4 VC-backed startups never return cash to investors
  • 75% of US VC money goes to just 3 cities: SF, NYC, Boston

My personal wake-up call:

  • Spent 6 years following YC playbooks, reading Zero to One, trying to raise capital
  • Applied to YC twice, got interviews both times, rejected after
  • Sat in Waterloo dorm room as 19-year-old immigrant with zero connections
  • VCs told me: "Come back with more traction" or "Move to SF"
  • Realized I was reading a Ferrari manual while riding a bicycle

The lie I bought into for years:

  • Thought raising capital was THE path to startup success
  • Believed I wasn't good enough when I couldn't raise
  • Tried to optimize for VC metrics instead of customer problems
  • Almost went bankrupt following Silicon Valley's "build first, charge later" advice

Chapter 1: Why most founders fail (and why you think it's your fault):

  • The 0.05% lie - all resources written for the 0.05% who raise VC
  • The geographical trap - if you're not in SF/NYC/Boston, you're fighting for scraps
  • The assumption trap - books assume you have Stanford degree, $2M to burn, US visa
  • System isn't broken - it just wasn't designed for 99.95% of us

Chapter 4: The revenue lie - why "build product first" almost killed my company:

  • Started SimpleDirect charging $29/month thinking it was "smart positioning"
  • Had 20 customers = $600 MRR but costing $2,000/month to support them
  • Paid sales team thousands monthly to close $29/month deals (insane math)
  • Customer told me he pays $12,000/month for Google Ads consulting
  • Switched to $2,000/month consulting model - 5 customers = $10,000 MRR
  • Cost to deliver: $3,000/month = $7,000 profit vs. losing money before

The consulting-first model that actually works:

  • Start with value proposition, get paid through consulting while learning problems
  • Validate with real money instead of surveys
  • Build product AFTER understanding customer needs from paid consulting
  • Revenue first, product second - build from position of strength
  • Don't need to quit your job to start (friends at Apple/Google can build too)

Why customers pay 67x more for consulting vs. product:

  • Accountability - they want someone on the line if things go wrong
  • Personalized onboarding and handholding vs. self-service software
  • Service model beats product model for early-stage validation
  • Customers make rational decisions based on projected value created

Chapter 11: The 30-year mindset - building for decades, not exits:

  • Traditional VC path: build fast, scale aggressively, exit in 5-7 years, start over
  • Most founders who exit get scraps after liquidation preferences
  • Starting over in your 40s after "successful" exit - loss of purpose
  • My model: Berkshire Hathaway for tech - own 100%, never sell, compound forever
  • Stack profitable businesses, reinvest profits into more businesses

Why the VC game isn't designed for most of us:

  • VCs optimize for their outcomes (1-2% management fees), not yours
  • They need exits in 5-7 years for their fund structure
  • Their advice is written for their benefit and the 0.05% who can play
  • Nothing wrong with VCs - their game just isn't YOUR game

The book details:

  • 13 chapters, 350 pages (currently Google Doc draft v0.0.3)
  • Completely free, always will be free
  • Real stories, real numbers, real mistakes so you don't have to make them
  • Comments open for community feedback and collaboration
  • Final version launching in 1-2 months as PDF and audiobook

Three chapters that will change how you build:

  1. Why most founders fail and why you think it's your fault (the 0.05% lie)
  2. The revenue lie - why "build first, charge later" is poison for bootstrappers
  3. The 30-year mindset - ownership beats valuation every single time

Who this book is for:

  • The 99.95% who will never raise VC
  • Bootstrap founders and consulting-first builders
  • Founders in Toronto, Arkansas, Oregon - anywhere but SF
  • Freedom-over-growth founders who want to own 100%
  • College students who deserve truth before wasting 6 years like I did

Red flags you've been poisoned by Silicon Valley advice: Thinking you need to quit your job to start, believing raising capital = validation, optimizing for VC metrics instead of customer problems, assuming you're not good enough because you can't raise.

Bottom line: The startup advice industrial complex is fundamentally broken. It's making people afraid to start companies while pretending that everyone will raise VC when 99.95% never will. This book is the antidote - the consulting-first playbook for building profitable, owned, compounding businesses you never have to exit.

Read the draft (Google Doc with comments open):

https://docs.google.com/document/d/114epRAQ34iNeI2QYjTf88V6p82GxchRTz-3pvcIalQY/edit?usp=sharing

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X

Full episodes: founderreality.com

Email: [email protected]

  continue reading

34 episodes

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