Founders Game vs. VC Game: Which Game Are You Playing?

Before I became an entrepreneur, my world revolved around venture capital. In that world, success was synonymous with building a billion-dollar company — a unicorn. It was the only path I knew. The VC Game, with its high stakes and glamour, seemed like the ultimate goal. But as a founder, I’ve discovered there’s another path, one that VCs might frown upon but that can offer incredible rewards to founders and employees alike. This is the Founders Game.

It took me a while to grasp the concept of the Founders Game. It wasn’t until I heard about Brazilian entrepreneurs intentionally building companies to be acquired — sometimes for “only” US$10 million to US$100 million — that it clicked. At first, it felt strange. Why aim for less? But then, I saw it play out. A close friend recently completed an acquisition that was truly life-changing — not unicorn-level, but enough to make years of effort and sacrifice worth it. The best part? Since they hadn’t raised much funding, they owned nearly 100% of the company. That’s when I realized the Founders Game is about control, efficiency, and tangible success. It’s not the shinier game, but it’s one more founders should consider.

The Founders Game

The Founders Game is about building something solid, profitable, and attractive enough to be acquired for US$10 million to US$100 million. It’s not about raising millions in VC funding; it’s about doing more with less. In the Founders Game, the less you raise, the more you own. And the more you own, the smaller the exit you need to achieve life-changing wealth.

This approach flips the VC mentality on its head. Instead of chasing the unicorn dream, you focus on building a product that solves a real problem, often for a niche market. Forget the vanity metrics and splashy press releases, this is about sustainability and profitability.

Here’s the secret: smaller exits are more common than billion-dollar ones. There are more buyers for companies in the US$10 million-US$100 million range. Strategic acquisitions happen when a larger player sees value in what you’ve built, and smaller exits make the pool of potential buyers much bigger. In Latin America, where M&A opportunities are growing, the Founders Game is especially relevant.

But to win at the Founders Game, you need to play smart. Here’s how.

How to Win at the Founders Game

1. Build Something People Want
Sounds obvious, right? But in the Founders Game, it’s non-negotiable. You can’t rely on hype or FOMO (fear of missing out) to raise funds; you need a product that genuinely solves a problem. It doesn’t need to serve a massive market, but it needs to matter deeply to a specific audience.

2. Raise Only What You Need
The more you raise, the less you own. And in this game, equity matters. Raising just enough to build and grow smartly keeps your cap table clean and your valuation reasonable for potential buyers. Over-raising can price you out of acquisition opportunities.

3. Be Cash Efficient
This isn’t the game for excessive spending on PR stunts or team retreats. Every dollar should go toward building a better product or reaching more customers. The goal is to become profitable as soon as possible, giving you leverage and options.

4. Build Relationships With Potential Buyers Early
Acquisitions don’t just happen, they’re the result of relationships. Start connecting with strategic players early on, even if you’re not thinking about selling yet. When the time comes, you’ll be on their radar.

The VC Game

Ah, the VC Game: the shiny, adrenaline-pumping pursuit of unicorn status. In this game, you aim to build a billion-dollar company, which usually means raising millions of dollars, scaling aggressively, and chasing massive markets. It’s the stuff of TechCrunch headlines and founder folklore.

But let’s not sugarcoat it: the odds are brutal. According to DemandSage, there are around 1,422 unicorns globally. Compare that to the estimated 150 million startups in existence, and you’ll see that unicorns represent just 0.001%. In other words, this is the NBA of entrepreneurship: most people won’t make it, no matter how hard they try.

Still, the VC Game has its appeal. The rush of rapid growth, the chance to be a global leader, the potential fame and recognition — it’s intoxicating. But it’s also a game where only a few win big, and many burn out trying.

How to Win at the VC Game

1. Build Something People Want (Again)
Yes, this rule applies here too. Unicorns are built on products people love. If your product doesn’t solve a real problem, no amount of funding will save you.

2. Focus on Scalability
To play this game, you need to think big. Technology, automation, and AI are your friends. Offline models can work, but they’re harder to scale.

3. Become a Fundraising Master
The VC Game requires serious fundraising chops. You need to pitch your vision, create FOMO, and close rounds. Just remember: being a great fundraiser doesn’t make you a great founder. Don’t neglect your product.

4. Raise Responsibly
Even in this game, over-raising can hurt. Dilution is real, and giving away too much equity early on can diminish your returns — even if you make it to unicorn status.

Why Founders Should Care About These Games

As founders, we pour everything into our startups — our time, energy, and sometimes our sanity. Choosing the right game is about aligning your vision with your reality. Do you want to build something sustainable and secure a meaningful reward for your efforts? Or are you willing to go all-in for the chance to create a unicorn, knowing the odds are slim?

The Founders Game and the VC Game aren’t just two different paths, they’re two different mindsets. The Founders Game prioritizes control, efficiency, and realistic success, while the VC Game is about scale, speed, and swinging for the fences.

Neither is inherently better; it’s about what matters to you as a founder. So, ask yourself: which game are you playing, and are you ready to win?