Solarpunk

If they become a worker owned cooperative, they may be able to find a credit union that will give them a loan to grow (there are some that specialize in helping cooperatives). Likely not as much as VC money, but far more sustainable, and for the workers who work there, far more equitable and ethical.

If they take the VC money, it is fairly inevitable that they will want to sell their share of the business and bail at some point. The least they could do if they take the VC money is actively encourage and facilitate their workers to form a union with the IWW, so at least they have a head start in bargaining with their VC overlords after he cashes out. But that scenario is far less ideal than a worker coop.

Do not try to get money from venture capitalists. Try to find three or four customers that you really work with to solve their problems. Grow slowly and steadily.

Investment funding seems to be tightly connected to making unsustainable decisions that lead to someone trying to do "10x in 3-5 years"

This mightve come across as blunt, but I really think following a strategy that increases agency and independence is the one proper way of doing things the right way in the long run.

☀️

Find a different strategy for investment. Maybe crowdfunding? I know that seems infeasible but hear me out.

If he is against the current environment, one of the main things he can offer that other places can't is customer service. This was hammered into me in my twenties when I worked in a small rural grocery store that was somewhat competing for business with the Walmart about a 20 minute drive away. Being close to where people lived, keeping a stock of what those people wanted and needed, offering services they used, and giving them quality customer service from people they got to get to know on an interpersonal level is what could sway people to not make that 20 minute drive for something cheaper. For the most part, it worked.

So many companies are chasing AI because they want to dump you into a customer service loop with an AI that never helps you. So many companies are chasing SaaS because they want endless income streams to be able to go public and sell the company. So many companies are choosing B2B because we've hollowed out the consumer class and the only groups who have a lot of money left to spend are big businesses.

Focus on customer service and having real customer service agents, word of mouth will make people know that this company has humans you can talk to. Work with local governments to get grants to give some of this product away to local medical facilities or locally owned gyms for the sports use. State government grants are actually an excellent way to get funding and get your product in the hands of people who need it. Also, selling to state governments is also similar to a B2B model, except you're working with the government to try to get things into the hands of people who need it.

Anyway, just some thoughts, shooting from the hip so to speak on the idea. Hope it makes sense, good luck to your friend.

“B2B” has existed as a term at least since the 90s, and as a concept for thousands of years.

And SaaS or any *aaS in IT is just virtualization. And that’s been a concept in IT for like 20 years now.

But I’m with you in the AI thing. Throw crypto in there too.

Whoa, I'm in their shoes right now!

Ok, the shoes are uncomfortable af and have holes, but mine are clean! I've lived with this tech company for 4 or 5 years now, and I never ever stained myself with VS bullshit. I might go bankrupt this month, I had harsh betrayals and market fluctuations beating the shit from me. I've got store with sales that are just too slow. I've delayed salaries for almost a month (except mine, I haven't made any money for myself this year lol). I still refused to go for all those investor traps and I'm proud of that. Worst case - I'll just go bankrupt and start over!

With investments, you'll never get out clean, without betraying yourself. There will always be compromises. And you won't get very much richer in the end, it's a game where those "bad guys" will inevitably burn you unless you'll become one of them. The rich will get richer and you've participated in burning the world? Not cool.

I've been there. I had in my hands technologies that save the world. I had nuclear waste treatment technology tested in Fukushima. I had sub-10 nm lithography in 2014 (and we showed it to Intel in hopes they'll just hire us back then). Investors never want to save the world, they want coke and whores and to burn us all. Decision makers will keep messing things up. Only grassroots are sustainable.

(please do come to my store buy some weird stuff before it's gone and I'm losing everything and starting another company again: https://store.zymologia.fi/)

Gosh, this post and especially all the comments singing with unison to my dream cheered me up, I've got to go do something good now!

Many countries have business grants, especially for sustainable or otherwise advanced businesses.

Some of them are low interest loans for developing a startup that might otherwise not find investments.

Others are more like research grants for developing a process or technology, a small sum of money to do research for a limited time and to produce some tangible results.

Seek investment and do what they want, but use the profits to build a sustainable branch as well.

I don't know if this is helpful in the specific situation, but check it out: https://rutgerbregman.com/sma