Jonathan Low is the CEO & Founder of Biptap, world’s first all-in-one financial system, providing global users access to full banking suites
Building a startup isn’t just about having a great idea. It’s about survival—navigating venture capital politics, scaling efficiently and making decisions that ensure long-term success.
For the past three years, I’ve bootstrapped and scaled a fintech company without adhering to the typical venture capital playbook. I’ve raised funds, secured strategic partnerships and built a thriving business—while watching others burn through millions only to collapse months later.
The system isn’t broken; it’s structured to favor investors, not founders. Understanding this reality is the first step to beating the game.
The VC Power Game: What Founders Need To Know
Many entrepreneurs believe venture capitalists fund innovation. In reality, they fund exits. Their goal isn’t to build sustainable businesses—it’s to maximize returns as quickly as possible.
Here’s how the game actually works:
• VCs invest in exits, not startups. If they don’t see a clear path to a lucrative acquisition or IPO, it’s likely your business won’t make their shortlist.
• Hype can outweigh fundamentals. In my experience, a pre-revenue startup with the right buzzword—AI, Web3 or biotech—can sometimes raise more funding than a profitable company with strong fundamentals.
• Founders are replaceable. If investors believe a different CEO can accelerate growth, they won’t hesitate to find a replacement.
• Burn rates are encouraged, then weaponized. VCs might push aggressive hiring and rapid expansion. When the money runs out, the founder can be the one to bear the consequences.
Venture capital isn’t inherently bad. But if you don’t understand its mechanics, you risk becoming a pawn in a much larger game.
Raising Capital Without Losing Control
Securing funding is essential for growth, but doing it on the right terms determines whether you remain in charge of your own company. Here’s how to raise capital without compromising control:
1. Understand your leverage before negotiating.
VCs don’t invest out of goodwill—they invest because they see a financial upside. Your goal is to make them compete for the opportunity.
• Engage multiple investors simultaneously. A term sheet without competing offers leaves you at a disadvantage.
• Show them the exit before they ask. Investors want to know how they’ll see a return—whether through IPO, acquisition or strategic buyout.
• Revenue equals power. Strong financials mean better terms and less dilution.
2. Choose the right investors.
Not all capital is created equal. Some investors bring expertise and networks; others bring unnecessary risk.
• Watch for red flags. Investors pushing for rapid scaling at all costs may prioritize short-term valuation over long-term sustainability.
• Seek those who add value. The best investors open doors to key partnerships and top-tier hires.
• Avoid rushed deals. Smart investors take time to understand your business. If an offer seems too eager, it may come with strings attached.
3. Secure more capital than you think you need.
The worst time to raise money is when you’re running out of it.
• Raise at least 18-24 months of runway. Anything less can make you vulnerable to bad terms.
• Always be in talks, even when not actively fundraising. The best deals happen before you need them.
• Build a financial buffer. If you believe you need $2 million, raise $3 million. Economic shifts and unforeseen challenges are inevitable.
Scaling Without Burning Out—Or Burning Cash
Startups rarely fail due to a lack of funding. More often, they collapse because they mismanage growth.
1. Hire strategically, not for optics.
Remember that your team is either your greatest asset or your biggest liability.
• Avoid premature executive hires. For instance, a CMO, CFO or vice president of growth means little if they don’t drive measurable results.
• Prioritize revenue-generating roles. A great engineer builds a product; a great marketer sells it before it’s even launched.
• Scale at a sustainable pace. Over-hiring without sustainable revenue leads to layoffs when capital runs out.
2. Cash flow matters more than valuation.
A high valuation doesn’t keep the lights on—positive cash flow does.
• Don’t fall into the “growth at all costs” trap. Rapid expansion without profitability is a recipe for dependency on external funding.
• Sell before you build. Validating market demand through presales or waitlists can mitigate risk.
• Keep burn rates lean. Efficiency should be a mindset, not a reaction to financial pressure.
The best-positioned startups are those that don’t rely on continuous funding rounds to stay afloat.
The Founder’s Mindset: Playing The Long Game
Remember: You are your company’s greatest asset. If you burn out, so does your vision. But your job isn’t to do everything—it’s to ensure everything gets done. Prioritization is key. That means ignoring the noise—while advice is abundant, only experience determines its value.
Winning On Your Own Terms
Startups are a high-stakes game. Most don’t fail because they lack capital—they fail because they lack strategy.
To build a company that lasts:
• Raise capital without giving up control.
• Scale revenue before scaling headcount.
• Understand the venture capital game—but refuse to be a casualty of it.
The founders who win aren’t just the smartest. They’re the ones who master the game while refusing to be played.
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