Patzer, the founder of online personal finance service Mint, speaks from experience. After he sold Mint to Intuit for $170 million in 2009, he had more than enough cash on hand to finance his second startup.
And that was the plan--until he found that venture capitalists wanted in, too. Patzer's new company, called Fountain, is an app that connects users via video and text to home improvement experts for help with do-it-yourself home fixes. Shasta Ventures and First Round Capital offered Fountain $4 million in total.
"You could argue: why would I sell some of the company?" Patzer says.
For him, the deal was strategic: he gave the two firms equity in exchange for their guidance.
"I know those guys, trust those guys," Patzer says. "They provide this great outside perspective."
From then on, his investors served as a sounding board for Patzer's new ideas, which he knew was key.
"You can get yourself into trouble by simply doing whatever you want 100 percent of the time."
"You should just do it like 97 percent of the time," he adds jokingly.
For more on how to launch a startup the second time around, check out the video below.