I would say that there's a continuum based on what you're trying to build. If you're trying to build something that needs huge networking effects to succeed (g

I would say that there's a continuum based on what you're trying to build. If you're trying to build something that needs huge networking effects to succeed (general-purpose social networks have been an obvious example in the recent past), trying to bootstrap it past a certain point is going to be counterproductive. You have to try to shoot for the moon. Other types of businesses are likely to never have a use for significant financing: the blog includes an example of a pet daycare. Starting a web design consultancy is usually in this same category. Of course, many tech startups are somewhere in between. The company could blow up huge, but it can also be sustainable with gradual growth and limited capital. Then it's basically a tactical decision when and if to seek capital.