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I'm always conflicted about this because it's like saying the sky is blue. Stepping outside of the VC startup bubble, we see small self-funded businesses are t
by garrickvanburen 2y ago
I'm always conflicted about this because it's like saying the sky is blue.
Stepping outside of the VC startup bubble, we see small self-funded businesses are the norm. It's the neighborhood businesses all around us.
82% of all US business have <10 employees
https://forstarters.substack.com/p/for-starters-10-the-three-risks-of-entrepreneurship https://forstarters.substack.com/p/for-starters-10-the-three...
99.976% of new businesses don’t raise venture capital.
https://forstarters.substack.com/p/for-starters-32-start-with-a-professional https://forstarters.substack.com/p/for-starters-32-start-wit...
- system2 2y agoHN wants to hear what they already know, what to hear, or agree on.
- deleted 2y ago[deleted]
- bbor 2y agoI'm guessing you know this, but for those new to the terms: what this post describes as the "VC route" and the "bootstrap route" are usually referred to as "growth businesses" and "lifestyle businesses" (i.e. pays for the lifestyle of the founders). As a big believer in the need for syndicated worker's coops, I think this basic distinction is a pretty great radicalization tool against the current system ;)
- ahzhou 2y agoVC vs bootstrap is usually based on company TAM. There are certainly high growth bootstrapped businesses.
- julianeon 2y agoBut the percentage we're really interested in is "what percentage of tech based startups are VC vs. bootstrapped." Especially in, say, the Bay Area. I don't know what that figure is, but I'd like to know.
- ahzhou 2y agoNot common in Silicon Valley, but much more common in the rest of the country. There’s an archetype for bootstrapped tech businesses: - highly vertical specific - couple hundred million TAM - founder started the business in their 30s and is now in their 40s