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Do you have any data to back that up claim? My experience with bootstrapped companies is that they are just as subject to pressure to grow as startups, and pro
by IKantRead 3y ago
Do you have any data to back that up claim?
My experience with bootstrapped companies is that they are just as subject to pressure to grow as startups, and probably have a higher success rate.
Atlassian, Github, Mailchimp and Shopify are all companies that initially started as bootstrapped companies and, in my mind, stand out as some of the most sustainably successful startups of recent history.
- tsunamifury 3y agoErrr all these companies eventually took VC
- IKantRead 3y agoBut when they were early stage, which is when the discounts being discussed apply, they were bootstrapped companies. Parent's argument is that bootstrapped companies are dramatically less likely to ever grow and that only VC backed early stage companies are, therefore it makes no economic sense to provide discounts to bootstrapped early stage companies. My point is that I don't believe that this holds out in the data that expected long term value of a bootstrapped company is significantly lower than a VC invested on. Personally, I find there is ample evidence that "VCs largely are just handing money around to each other to give the illusion of growth" is a solid hypothesis.
- tsunamifury 3y agoI don't get this -- it's obvious -- boot strapped companies are lean and will likely stay lean and be at best a small business. VC companies burn to get big -- and will spend big to get there. And likely fail. But spend a lot to fail. The offering makes total sense if you understand the market -- I don't know why so many boostrappers are so stubbornly against just how reality works.