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Whether to boostrap or raise VC for SaaS businesses?
I was looking at few of the growing bootstrapped SaaS businesses and saw that some of them are growing about 30% YoY and profitable.
Given that AI is making builders more productive, for building a SaaS, is VC funding even required?
Edit: source of the data https://goldenpineapple.substack.com/p/the-fastest-growing-bootstrapped
- loondri 3y agoI would say with work from home and AI helping you build stuff quickly, bootstrapping is a great way to validate the market needs and reach to 10k MRR I did the same with my bootstrapped data intelligence startup
- abhilashcho 3y agoInteresting. Mind sharing more about what your startup does?
- datanerd_69 3y agoHonestly, I think it depends on your company's financials. If you have a healthy ARR topline and have been profitable with solid margins, practically there ain't any reason to source funding. But then its a also a question about how fast you wanna grow your company - whether you're happy with gradual and steady growth or want to desperately blitzscale!
- abhilashcho 3y agoBut I think the main problem is can you cold start without VC? I've a side project and I'm trying to figure out whether to spend time meeting VC and raise funds or just execute + build product.
- bhag2066 3y agoIf I were doing it I'd set out to do everything in my power to bootstrap and own 100% of the company. I think that's the easiest it's ever been for the reasons you say and because of cheap cloud resource. I'd use VC as a last resort or if I genuinely needed to accelerate development or growth for competitive reasons.
- deleted 3y ago[deleted]