Which is better? Self-funding your startup or going for VC investment? Is it better to maintain the freedom as the financier of your business or sacrifice it for the benefit of greater capital from investors? In this episode, we host Dan Roberge as he unpacks self-funding and VC investment pros and cons. Dan Roberge is a results-driven President and CEO of Maintenance Care with a key focus on sales, marketing, and product development. His extensive experience building a company from the ground up, including establishing budgets, marketing image and strategy, business culture, sales processes, support protocols, and product development tailored to industry needs, makes him a great resource for startups.

Dan's career background: His passion for the creative side of things originated from his academic background in film. He started with marketing for client companies before he established his own company with his wife. Dan started as the marketing person for their startup before they could bring on board a team as the company scaled. 

When did he have the epiphany to start his own business: He first founded a wedding video company upon graduating from film school. With his spouse as a partner, they then launched a small advertising company from his long-held desire to be a founder. Due to cash flow challenges associated with a self-funded startup, he would seek employment in the insurance industry as a marketer. (Having your own business allows you to see the impact of your work directly).

Did his startup use self-funding or VC investment: Dan explains that their startup utilized the self-funding option instead of VC investment. They yearned for freedom from taking charge of their business establishment. However, Dan reckons that the self-funding model presented often hits its peak. As such, the founders must make tough decisions to adopt the VC investment model. (The funding path you choose depends on your ultimate goal).

Demerits of self-funding your startup: Dan reveals that cash flow problems with the self-funding model forced them to mortgage their house up to three times. In this regard, he risked the equity he had built for his house to grow his maintenance care startup. Although they started their company in 2003, Dan reveals that the business did not register any organic income for the next 5 years. This was because of the initial low adoption of computers in the maintenance industry. However, the founder's persistence in him saw him continue running the company until the marketplace was ideal for business. (When self-funded, you have to risk everything and be aware that you could lose everything at any moment).

Time Codes