Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?

Personally I think there is a lot of “kudos” for getting VC funding, so founders often get lured just for status reasons, joining the competition to become a unicorn.

Unless you want to (or need to) “swing for the fences”, why give up ownership?

Being a founder is already hella risky, and accepting VC money increases your leverage and your risk, which is just uneconomic for an average individual to do (unless they are already wealthy). Don’t double down on a risky bet.

VCs get preferential shares, and they have a lot of different ways of taking control in the clauses of the contracts you sign which disempower you, and in return you get shitty common shares and often lose control for the worst reasons.

I helped found a small business, and we retained full ownership which worked out great for us, although we will never get those mystical 7/8/9 figure payouts. The majority of founders only make wages[1]. We were in an incubator during our inception and I saw a lot of businesses get sidetracked by all the funding bullshit, control issues, stress, wasting time chasing investors, trying to follow conflicting or bad advice.

If you do want to chase funding, consider applying for https://www.ycombinator.com/apply/ which will help avoid you getting shafted. Other VC transactions are highly negotiation information asymmetric, because they have done many many transactions and you are doing your first, so you will get taken advantage of. By joining YC you get the help of a repeat player (game theory) with strong backing and solid knowledgeable advice, so you have far more negotiating strength.

[1] It is hard to get figures on returns for founders, but the median is bad. Most VC funds lose money[2], so VC backed founders do worse (common shares). Some analysis for YC backed founders (and YC founders are more successful on average than most): https://news.ycombinator.com/item?id=31350478 https://news.ycombinator.com/item?id=30926821

[2] https://news.ycombinator.com/item?id=24911009

If you're satisfied with being paid to solve clients' problems - which is a very common and in my opinion positive mindset, whether one is a business owner or an employee - then if I were you, I'd just stick with that. You've already achieved something to be very proud of!

It sounds like your "Silicon Valley" type friends have ideologically bought in to a pipedream. Please be true to yourself and your own beliefs and try not to succumb to peer pressure, is my advice.

Thing is I enjoy my life. I value free time and low stress way more than luxury. I have all the things I want and can afford everything I need.

My point is you are in the position to choose what is best for you. Don't follow the money just because money, except that's what you value most.

This. The VC model is to turn the business into a gamble: grow huge, or die trying - "planet-scale growth or self-destruct". (The third outcome, "get acquired" is a wash) They an afford to lose that gamble the majority of the time, because the minority of big wins make up for it. They do it in parallel.

But for the business owner, it's just one roll of the dice. A single shot at a time.

You don't seem to want this gamble. Good for you. Tell them politely that this doesn't suit your plans at this time.