Hulken president Alex Schinasi, who ran two venture-backed software startups before co-founding the tote bag brand without outside funding, explains how capital dependency can pull founders away from the metrics that keep a business healthy.
The previous companies were venture backed. Is that right?
Yeah. So I had two venture back startups, uh, which, you know, I think they needed to have venture to grow. So I think every business is different.
I think in the case of Hulkan, we haven't needed capital up until this point. doesn't mean that we will never raise capital.
I just think we were lucky to have a product that was scalable profitably, which is not the case for every company. Also think there's many different types of ways to fund raise.
But Lord Jesus, doesn't it feel good?
Not to do it?
Oh my god. Let's just be real honest for a second.
Let let's be real. It feels amazing. I definitely enjoying the ride, not to have, you know, investors breathing down my neck. I also think investors can be great partners, right? So I think it really depends.
But, uh, I just love having a great business, you know, above anything else. It's not it's not a matter of capital, no capital. I just love having a business that
Yeah.
is profitable, is growing healthy and and beautifully. And I think that takes precedence over anything else. I think it shows like how much I'm enjoying the process.
Oh, for sure.
I also I since you have kids too, I I always think about raising capital of like having your kid and you think, Oh, it wasn't that bad. I could do that again. It didn't really hurt. It didn't it wasn't like sleep deprived. And then you have it have another and you're like, oh shit, that was hard, right?
Yeah.
No, it wasn't. Yeah, that's what it was like absolutely. I think we we're definitely a little bit scarred from the fundraising process. I think also as women, it's just not an enjoyable process at all.
Uh yeah, no, I feel very lucky that we didn't need it. I also think raising money when you're in a place of power is very different. So I think if we ever raise money, it would be with that mindset of, you know, growth and power versus needing it to scale.
I always say that capital is not the enemy, right? Capital dependency is the enemy because then you end in these endless cycles of fundraising that you can't get out of. And it also distracts you from the important metrics that are needed to keep your your business profitable. And I think when you are self-funded, those realities hit you much faster and much harsher.
And if something is not working in your balance sheet, you you have to deal with it and you have to deal with it immediately.
So capital is not the enemy. Capital dependency is the enemy. I love it.
