Jason Fried: “Venture capital money kills more businesses than it helps”

But the vast majority are not, and should stop raising money like they could be, says Basecamp CEO Jason Fried. “Raising a bunch of money, and raising way more than you need, it ends up stunting people’s actual growth as businesses. Fried told Recode’s Kara Swisher that venture capital “kills more businesses than it helps” because the pressure to grow crazy-fast means companies keep raising money to keep their growth rate up. The company’s products include the project managing app, Basecamp, which is super popular, and an online chat service for coworkers — it’s one of the first out in the chat services — called Campfire. So let’s talk a little bit about Basecamp and how you got to do Basecamp, because Basecamp is one of the first… There’s been a lot of these, and there’s all kinds of different things, but you guys were one of the first to think about a different workflow.

Source: www.recode.net