Profitability First: Rethinking the Startup Fundraising Playbook

Why I Believe in a Smarter Path to Fundraising

The startup world often follows a well-known playbook: join an accelerator, land an early-stage VC, and then raise round after round to keep fueling growth.

There’s no doubt this model works for certain ideas — and I absolutely see the value of early access to capital to go full-time on a vision and build the initial team. But from what I’ve seen (and experienced myself), the speed and pressure after that first round can be dangerous. Many good products end up failing because they scale teams too fast, burn cash too quickly, and don’t reach profitability in time.

Investors, of course, have their own rules of the game. They need to maximize returns for their portfolio. But this sometimes pushes founders into chasing valuation and headcount instead of building something sustainable. Travelbird is one example that comes to mind: strong branding, very popular — but ultimately brought down by an unsustainable burn rate.

With Planaway — my all-in-one social travel booking platform — I want to approach fundraising differently. I don’t want to gamble on becoming one of the small percentage of VC bets that “make it.” Instead, I believe there’s a path between the extremes of pure VC-fueled growth and pure bootstrapping: a smarter, more sustainable way.

My focus is profitability first, then scale. Not only because reducing team size later is painful and risky, but also because being profitable is a stronger argument for later growth investment. Yes, one can argue you prove product-market fit by aggressively scaling — but that way you risk early capital much more. I’d rather build resilience into the business model, protecting both the company and its early investors.

My ideal path looks like this:

1) Bootstrap the prototype.

Spend a few months building a fast prototype while setting up the company structure to start selling early (even if it’s to friends and family). This doesn’t need half a million — just enough to move fast and validate. If you don’t have savings, an angel or trusted family investor can bridge this.

2) A Seed round with sustainability in mind.

At this point, the product works technically, and the job is to prove product-market fit and revenue. Many founders treat Seed as just the first of many VC rounds. I see it differently: this is the opportunity to build a sustainable, money-making machine.

Let’s say you raise €500k–€1M. With that, you should be able to reach a point where the business either stands on its own legs, or is in a strong position for future growth funding.

The type of investor matters here. Classic VCs usually aim to exit within 10 years and push for 10x returns in 2–3 years. That doesn’t always align with building something sustainable. For this stage, I believe the right fit is often a private investor — someone who’s also happy with annual returns and long-term growth, not just a “moonshot” outcome.

3) Optional growth round (under the right conditions).

If profitability is in sight and the core product is proven, an additional funding round can accelerate expansion — but only if the terms and timing make sense. This step isn’t about survival capital; it’s about amplifying what already works. For example, raising a Series A could help expand into new markets, invest in deeper tech, or build partnerships. The key is that the business should already function sustainably, so this round is a multiplier, not a lifeline.

4) Strategic capital for scale.

In some cases, a later round (Series B or strategic investment) may be the right move to seize a market opportunity quickly. But again, this only makes sense with clear constraints: strong unit economics, healthy burn multiples, and an exit strategy aligned with both the founders and investors. It’s not mandatory — but if the stars align, this capital can accelerate Planaway into a category leader without compromising its foundation.

Final thought

I’m not against venture capital. I just believe the best outcomes come when fundraising strategy matches the type of company being built. For Planaway, that means a more balanced approach: profitability first, growth second — so both founders and investors are protected, and the company can grow on solid ground.