3 ms·

Why Bootstrapping Is Overrated

13 points by jiyannwei 13y ago

mindcrime 13y ago
Hmmm... is it just me, or did anybody else read that and feel like nothing there really supported an assertion that "bootstrapping is overrated"? Maybe it's just my own biases leaking through, as we are currently following a bootstrapped approach with Fogbeam Labs. And I most emphatically do not agree with (apparent) implication mentioned in the article, that seems to state "if you don't raise cash you are only building a lifestyle business". IMO, it all comes down to timing and necessity. We will raise money if and when we need to. Our identity isn't tied in being "a bootstrapped startup" for perpetuity. It's just a strategic decision that makes sense right now. And if we reach a point where it's apparent that raising money is required, we'll do it. But if we can achieve our goals without raising outside money, then why would we? The interesting thing, to my mind, is this: If you start off with a bootstrapped approach, you can go raise (or at least try to raise) anytime. But once you raise, there's no going back. And the thing is, it's not "go big or go home", it's "go big on our schedule or go home". Big difference, IMO.
- jiyannwei 13y ago
  I agree with you 100%. My initial goal was to represent a perspective on the relative pros/cons to both and point out that for most companies, there is a time to consider either approach. Regardless of the ultimate direction, bootstrapping teaches you invaluable lessons that will make you a stronger entrepreneur if/when you decide to raise. Our personal experience was that after bootstrapping for a while, we encountered several obstacles based on our product vision, skill set and market that raising helped us overcome. I wouldn't suggest that this is the case for everyone: different calibrations of founders/products/verticals might have very different equations for success.
orasis 13y ago
Yes Virginia, starting a company is hard. At least you focused more of your effort on product and customers than raising capital.

13 points by jiyannwei 13y ago

Hmmm... is it just me, or did anybody else read that and feel like nothing there really supported an assertion that "bootstrapping is overrated"? Maybe it's just my own biases leaking through, as we are currently following a bootstrapped approach with Fogbeam Labs. And I most emphatically do not agree with (apparent) implication mentioned in the article, that seems to state "if you don't raise cash you are only building a lifestyle business". IMO, it all comes down to timing and necessity. We will raise money if and when we need to. Our identity isn't tied in being "a bootstrapped startup" for perpetuity. It's just a strategic decision that makes sense right now. And if we reach a point where it's apparent that raising money is required, we'll do it. But if we can achieve our goals without raising outside money, then why would we? The interesting thing, to my mind, is this: If you start off with a bootstrapped approach, you can go raise (or at least try to raise) anytime. But once you raise, there's no going back. And the thing is, it's not "go big or go home", it's "go big on our schedule or go home". Big difference, IMO.

jiyannwei 13y ago
I agree with you 100%. My initial goal was to represent a perspective on the relative pros/cons to both and point out that for most companies, there is a time to consider either approach. Regardless of the ultimate direction, bootstrapping teaches you invaluable lessons that will make you a stronger entrepreneur if/when you decide to raise. Our personal experience was that after bootstrapping for a while, we encountered several obstacles based on our product vision, skill set and market that raising helped us overcome. I wouldn't suggest that this is the case for everyone: different calibrations of founders/products/verticals might have very different equations for success.

orasis 13y ago

Yes Virginia, starting a company is hard. At least you focused more of your effort on product and customers than raising capital.