E32: Why I Wrote a 350-Page Free Ebook Against Everything Silicon Valley Teaches
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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:
- Why most founders fail and why you think it's your fault (the 0.05% lie)
- The revenue lie - why "build first, charge later" is poison for bootstrappers
- 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
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Email: [email protected]
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