4 ms·

Isn't crowdfunding a better way to bootstrap a startup?

• localfirst 2y ago
  but ppl arent going to crowdfund your b2b database crowdfunding is always hardware for some reason and consumer stuff...like games
• muzani 2y ago
  Downside with bootstrapping is you usually end up with 5% of the market. Someone else uses VC money to build a distribution engine, grabs 95%, and then acquires you. Usually bootstrappers are more well fortified and have a loyal community though. The downside of crowdfunding is you actually have to sell pretty hard to investors and you're also locked in to whatever you promise. Kickstarter locks you into stretch goals. Equity crowdfunding may lock you into a mini IPO situation, with inexperienced investors who put unwanted pressure. Upside is you don't need to build a unicorn. Bootstrapping works best for something that is a small market, and VCs won't fight over small markets. Best example is something that only works in one country or one language, or say, a company that makes realistic 3D tree assets for CGI.