Early capital is expensive capital.

Last year, I had the incredible opportunity to attend the Tropical Innovation Festival—a must for anyone in the startup ecosystem. One standout moment was hearing Vu Tran emphasize, "There is no more expensive capital than the first time you raise." At this stage, your company faces the greatest challenges: immature technology, a small IP portfolio, and high risk. This often means parting with significant equity for relatively modest funding.

In recent conversations with first-time, early-stage founders, I've noticed a prevailing eagerness to pursue VC funding prematurely—a path fraught with difficulties and expensive trade-offs.

Reflecting on my time at Vow, the lengths to which Tim Noakesmith and George Peppou went to bootstrap their MVP were extraordinary. From leveraging government grants to innovating with available resources (the sous-vide water bath is emblematic of the scrappy spirit adopted by Vow), their journey underscores the essence of entrepreneurial resourcefulness. Vow's success, kickstarted by a kangaroo dumpling featured in the WSJ, exemplifies the value of strategic bootstrapping before seeking VC funds.

So, here's the takeaway: Early capital comes at a high cost. Exhaust all alternatives—grants, loans, network support—before diluting your equity. When you do raise, maximize every dollar. Explore government and institutional support (in Australia, CSIRO has a number of programs to support early stage founders and state governments can provide 1:1 non-dilutive grant funding), to stretch your money further.

Remember, early capital is expensive capital.