The entrepreneur faces many ups and downs. Entrepreneurship is hard — and failure is common.
“There is a romantic notion of the entrepreneur. It’s a lot harder than it looks,” said Oregon Angel Fund’s Jon Maroney, who is also the co-founder of mobile developer FreeRange.
Maroney was part of a recent panel discussion in Portland, Oregon, that discussed the difficulty of starting a company. Another panelist was Dave Shanley, co-founder of the data startup Notion and co-founder of mobile app maker CrowdCompass.
Shanley, whose company CrowdCompass was sold to Cvent in 2012, noted that even as a successful startup that returned well for investors, there were hard times.
While the company was bootstrapping and delivering product to customers, it collected revenue, but it was lumpy and non-linear.
“There were months where payroll was iffy but then the money would come in on the last day,” he said. A crushing fourth quarter one year might lead to layoffs. But then, the next month would set records and the roller coaster continued. “It’s that contradiction of ‘we are going to crash and burn,’ and then (suddenly), ‘it’s everything is great,’” he said.