Yesterday Bloomberg featured an interview with FreshBooks co-founder and CEO Mike McDerment titled No VC: FreshBooks CEO Sees Risk Capital as Too Risky. In the article, Mike discusses his philosophy surrounding venture capital and why FreshBooks has chosen not to raise early stage VC.
Here’s a taste of Mike’s perspective:
For example, FreshBooks spends boatloads of money on customer support because that’s what keeps users coming back and encourages them to spread the word. An investor could see that as an unnecessary cost that could be outsourced or automated, McDerment said.