VCs need an exit to get a return. If not an IPO, then an acquisition. Unless of course the company becomes insanely profitable and can buy out their investors a

VCs need an exit to get a return. If not an IPO, then an acquisition. Unless of course the company becomes insanely profitable and can buy out their investors at a nice multiple. Silicon Valley may be good at multiples, but not so good at profitability. Acquisitions by private companies aren't as common as public companies, and the valuations aren't typically as high. So if everyone stays private, there aren't as many opportunities for 10x+ exits. Which means there's less cash to invest in high risk startups. VC's depend on the big winners to cover the countless losers. If startups bootstrap, then they need to make money early. Which means you can't hire until you make money, but you can't make money unless you hire. So ambitions are seriously limited in the first couple of years. As are salaries. Not easy to attract great developers when you can't afford to pay them. On the flip side, bootstrapping a company and focusing on building products that people not only love but are willing to pay for is insanely satisfying. There's also a lot of upside to working with a small team for many years before scaling.