13 ms·
It's worth noting that investment makes building a business wildly different to bootstrapping. You stop trying to build whatever a successful business looks lik
by onion2k 4y ago
It's worth noting that investment makes building a business wildly different to bootstrapping. You stop trying to build whatever a successful business looks like to you and have to build something other people believe in. That comes with a lot of compromises, different decisions, and 'selling out'. Some founders find that change in direction very hard to accept. Bootstrapping and investment are different journeys. Neither is easier.
- 082349872349872 4y agoAs an example of a possible compromise, recall the risk/return efficient frontier. If you are the principal investor in your venture, you may be willing to leave some potential return on the table, in exchange for dialling down risk to a comfortable level. If funds are the principal investors, they have already dialled down their risk via diversification over the rest of their portfolios, and they will view any risk-adversity on your part as inefficient dead loss. Solid base hit or swing for the bleachers? You may have the option to pick either strategy in the former case, but will not in the latter.