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There are three hurdles for bootstrapping (http://www.tonywright.com/2008/bootstrappers-beware/ http://www.tonywright.com/2008/bootstrappers-beware/ ): coveri
by pchristensen 17y ago
There are three hurdles for bootstrapping (http://www.tonywright.com/2008/bootstrappers-beware/ http://www.tonywright.com/2008/bootstrappers-beware/ ):
covering operations (ie hosting)
ramen profitability
salary profitability
For a web startup, you should bootstrap or take very small investment (ie YC's $15K) to get to ramen profitability. At that point you can choose whether to grow slowly from revenues (like patio11) or seek growth capital (like DropBox did a few months ago).
With the fall in costs for build web companies, a beta is the new PowerPoint. Any credible angel or VC will want to see a product and traction before giving you money.