According to venture capitalist Bryce Roberts, traditional venture capitalism isn't working for many startups out there. Roberts believes the venture capital landscape today encourages entrepreneurs to focus on getting as much startup funding as they can rather than focus on earning revenue. While that model does work for certain rapidly growing companies, like Uber, it is one that ends up getting many companies into trouble. 

Roberts is the head of a new kind of venture capital firm, called Indie.vc, which encourages low spending. He explained in a post on Medium that the goal of Indie.vc has been to create a wider definition of success in which profitability and sustainability, rather than excessive fundraising, are the main points of focus. 

Indie.vc heavily rejects the concept of the unicorn startup (when you visit its website, the first image you see is a burning unicorn), putting forth the idea that rapid, massive growth is often the wrong way to go about building a business. 

The benefits of prioritizing profits 
Entrepreneur James Nord, who participated in Indie.vc's first funding round, explained to The Wall Street Journal that when companies continue to raise massive amounts of funds, they often end up spending exorbitantly before ever really crafting a business model. Indie.vc helps companies grow at a reasonable pace and develop a strong model along the way. 

According to WSJ, Indie.vc offers something in between uber fast growth and complete bootstrapping (funding a company's growth with its own revenue). The firm does not take stake in its portfolio companies. Instead, it either takes some of the founders' salaries after a certain amount of growth or it converts its investment into ownership if part of the company goes public or is sold. If the company never wants to go public, it pays the firm back in cash, up to 5 times the amount it invested. 

Last year, Indie.vc invested in eight companies, all of which are still in business. This year it wants to grow its portfolio and make between 15 and 20 investments. Roberts wrote in his post that he was surprised to find it was not only bootstrapped companies in search of a small amount of cash that are interested in Indie.vc. The firm has also garnered interest from founders who have taken the traditional VC route but are, as Roberts wrote, "looking to build their company on their terms this time around."

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