Rackspace is NOT a good place for bootstrapped startups. They are relatively quite expensive and the services they provide towards their low-end clients are not

Rackspace is NOT a good place for bootstrapped startups. They are relatively quite expensive and the services they provide towards their low-end clients are nothing like what their reputation is commonly based on (higher end sites). If you're not comfortable being a sysadmin and your webapp doesn't require a dedicated host, then go with a shared host that can easily scale your allocated resources. If you really need something more demanding, look elsewhere for managed hosting.