Like much advice that is supposed to apply universally, this is false.
There are some kinds of startups so capital intensive that they came only built with massive external funding, notably hardware and biotech (and probably most deep tech).
In addition, products that face very slow sales cycles selling into enterprise or government can benefit from the time that external funding buys you.
What’s true is this: if you yourself are a builder and can run a very capital efficient software business in an industry you know well where you will not get lost in the idea maze, then you may not need VC funding.
In most cases, you will still need external capital from your savings, day job or friends/family.
There are some kinds of startups so capital intensive that they came only built with massive external funding, notably hardware and biotech (and probably most deep tech).
In addition, products that face very slow sales cycles selling into enterprise or government can benefit from the time that external funding buys you.
What’s true is this: if you yourself are a builder and can run a very capital efficient software business in an industry you know well where you will not get lost in the idea maze, then you may not need VC funding.
In most cases, you will still need external capital from your savings, day job or friends/family.