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  2. Bootstrap or VC backed?

Bootstrap or VC backed?

Tanvi Gandhi
8 replies
Let's discuss the pros and cons. Also, what would you prefer to begin with (while starting a company) or where would you prefer to work?

Replies

Nirnimes
Zeko AI
Zeko AI
I don't see the pros of being VC-Backed. Would you like to share any? @tanvi_gandhi
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Tanvi Gandhi
@nirnimes Exactly my point. The time required might take a little or a lot longer depending on various factors. With VC-backed companies, arriving at the ICP might require less time but it comes at a higher price. Also, VCs are a huge benefactor for founders with limited capital. They come with money, contacts, and support. Having said all of that, I'm a bigger proponent of bootstrapped companies and would like to grow that way. I totally understand your point and currently, I'm using that same philosophy to grow. :)
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Tanvi Gandhi
@nirnimes Even though I am managing a bootstrapped company, one benefit I would say about getting a VC behind is that it gives good PR and helps to gain trust from clients. This can be achieved even with bootstrap but the trade-off would be the time required.
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Nirnimes
Zeko AI
Zeko AI
@tanvi_gandhi I think the time required comes with another pro and that is the process of building that trust. Once you build that trust with your customers yourself, you'll know how to do it again or how to do it on scale. I think VC-Backed attention is a double-edged sword which gets you easy visibility but at the cost of actually understanding how my startup could've built that visibility and what is most important to my ICP or customers.
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Nirnimes
Zeko AI
Zeko AI
@tanvi_gandhi all the best on your journey! Would surely check it out if you're launching soon :)
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Kunal Mehta
Mentor.AI
At ProApp, we believe in taking the bootstrap route to build our edtech application. It has allowed us to maintain complete control over our vision and product development while staying true to our mission of empowering learners worldwide. Our team has put in a lot of hard work and dedication to make ProApp a reality, and we're excited to share it with the Product Hunt community today. We'd love for you to check it out and see how ProApp can help you learn design in a fun and interactive way! 😊 You can find us on Product Hunt here: (https://www.producthunt.com/prod...)
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Pamela Green
both bootstrap and VC-backed approaches have their unique benefits, depending on your company's nature, scalability, and risk tolerance, my personal preference leans towards bootstrapping to maintain control and make organic growth decisions, but I'm open to VC funding when the need for rapid expansion or a significant market opportunity arises.
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Tanvi Gandhi
@pgreen819 I totally agree. Certain industries require money to manage scale. Also, if the marketing is not aggressive in specific industries, it is easy to get overtaken by competitors with money.
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