One issue for these startups could be that their facing competition with deep, VC-lined pockets. I actually faced this to some extent with a bootstrapped startu

One issue for these startups could be that their facing competition with deep, VC-lined pockets. I actually faced this to some extent with a bootstrapped startup I ran--we were sort of competing against a startup with millions in VC funding that was handing out promotions like there was no tomorrow, and is still chugging along despite an unsustainable business model. It wasn't the primary reason we shut down, but it certainly didn't help.