3 ms·
Is there anything inherently good about being bootstrapped apart from the story? Well, the first point is obvious - should you eventually sell it, your ownersh
by gyardley 16y ago
Is there anything inherently good about being bootstrapped apart from the story?
Well, the first point is obvious - should you eventually sell it, your ownership will be higher if you haven't taken outside investment.
Depending on how the money is raised (convertible debt? purchasing common stock? purchasing preferred stock?), your investor will also have a variety of rights relating to the control of the business, which can potentially constrain you down the road.
Taking $100K in convertible debt is a lot easier to stomach than taking $100K and issuing a bunch of preferred stock for it.