Bootstrap or VC?
Bryan Voon
10 replies
Launching MVP soon. Deciding whether to bootstrap or to seek VC funding?
Open to any discussions.
Would be glad if someone experienced chip in the discussion.
Replies
Per Clingweld@per_clingweld
Zaplify
We started off bootstrapped but ended up getting some VC-money back in summar of 2021 when things were insane and every fund out there suddenly had the mandate from their LPs to invest in early-stage startups. Looking back now, I'm not sure we would have made the same decision today, but at the same time it has been a great learning experience for us all.
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@per_clingweld What's the main difference between having a VC backing other than financial backing of course. What would be the unknown negatives and positives of a VC backing that wouldn't be known otherwise?
Promptify.pro
That depends on two factors:
What are your goals and what is your product?
If you are trying to cure the cancer, probably you won't be able to fund by yourself but if the idea is creating a SaaS maybe you can delay the easy money and pursue a better equity/exit at the end of the journey.
Bootstrap
Sure. What are your thoughts for choosing bootstrap over VC? @alice_jackson1
Bootstrap
In summary, the choice between bootstrapping and venture capital (VC) depends on your business's financial needs, control and ownership preferences, growth rate objectives, risk tolerance, industry, market conditions, and long-term goals:
**Bootstrap**: Self-funding and growing your business with internal resources. Maintains full control and ownership but may limit growth speed.
**Venture Capital (VC)**: External financing from investors in exchange for equity. Provides significant capital for rapid growth but involves giving up ownership and decision-making authority.
Your choice should align with your business's specific circumstances and objectives, and some businesses may use a combination of both approaches at different stages of their development.