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Can someone shed some light on what happens monetarily to bootstrapped company founders? How many of them are offering personal collateral on loans vs some form
by oooyay 3y ago
Can someone shed some light on what happens monetarily to bootstrapped company founders? How many of them are offering personal collateral on loans vs some form of angel investing? I'm finding it hard to square open sourcing something if someone just lost decades of savings or the value in their home, so I'm curious if there's some way they're getting funding for their companies that doesn't ruin them if things like this happen. The tone is also very, "I lost dreams but not my livelihood" in many of these statements and I'm curious how.
- deleted 3y ago[deleted]
- bdon 3y agoCommon situations for founders who describe themselves as bootstrapped: - doing consulting work on the side - living off savings - having a spouse with income For bootstrapped companies in the software or SaaS space without employees there should be minimal start-up costs compared to say, opening a restaurant. The real loss is opportunity costs: what salary or equity you could have earned as an alternative.
- tmcw 3y agoI did consulting for the first 8 months of development, and then the company roughly broke even for operational costs since day one. I built most things myself which led to lower costs. My main cost was just rent and health insurance, which in America, self-employed, is both expensive and useless. I had savings from working for a decade in tech and minimized other costs. So, lucky position to be in, but also your average startup's monthly burn is enormous compared to what you can do by being scrappy.