Bootstrapping vs VC Funding

This article is technically correct about a lot of things, but it also feels like it’s over-thinking things. Yes if you take big VC investments, the purpose is to grow a big company and sell it later, and at that point the deal really is “rocket ship or bust.” But there are also a lot of VCs who are happy to invest small amounts very early, don’t get control of the company, and would be happy to see you get profitable without taking any more investment — often these smallest investors are called

Exactly! This the real choice: start a company or seek VC funding. The real reason to bootstrap, if your product/market permits it (e.g. doesn't require millions in up front investment), is that it preserves your options. You can seek VC money later if your business--not just your plan or your team--can justify it, and often at more favorable terms. And bootstrapping has a much higher chance of success than the 1 in 200 seeking venture funding gives you.

VC funding is usually a decision to "go big or go home" on a timeframe, while bootstrapping allows you to continue indefinitely at any scale once revenues cover costs. Both have risks but the VC model is explicitly to spend at unsustainable levels in order to try to get big fast. That's kind of the whole point of VC. It isn't wrong or selling out, but you have to know what you're getting into (as founder, employee, or customer). If you spend way ahead of revenue to grow fast, and you don't go bi

This is interesting, does it count if you're bootstrapping looking to go on to raise VC? As I'm 'bootstrapping' now?

An article on reasons to raise venture capital would be more appropriate. The default should be bootstrapping.

Why do you need VC funding? Plenty of people have bootstrapped businesses with no outside funding. Don’t ask VCs to pay your paycheck - ask customers to. Make something that’s worth paying for.

Yes, some types of companies need time to provide value, but in my opinion the vast majority of VC funded companies could easily be bootstrapped. I don't deny that the vision of receiving a fat check and being able to rent a beautiful office, buy the best equipment and hire a big team is tempting, but it's something for something - the main goal of VCs is to grow like crazy, without a sentiment. A bootstrapped company will grow slowly, but steadily, and I don't believe a VC backed

A bootstrapped start up is one that starts small and without taking funding works its way up to profitability. If your product is near launch get it launched and get selling it to customers. If that works then talk to VCs if you think the funding will help take you to the next level or just recycle the profits to grow organically.

Are you sure VC funding is needed to get started? Is there a reason you ruled out bootstrapping?Sure, you probably won't grow as big as fast, but you'll remain totally in control and enjoy the freedom of working for yourselves.

Why bother raising from a VC? Bootstrapping can work out very well.