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Highly Successful Bootstrapped Startups

softwarebyrob.com

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Re: Highly Successful Bootstrapped Startups

#11

Post by jswinghammer »

vaksel wrote: post #5

half of them I never even heard of...just goes to show the lack of coverage for self funded companies

Right but in many cases the companies don't really want to share their revenue numbers. It's sort of saying to people who would like to compete here is how little it cost to build, how much people have been willing to pay, and how big of a win starting this business would be.

I don't really see myself talking about revenue numbers for my company. Not sure how I benefit from it besides the ego and status boost which isn't interesting to me.

Re: Highly Successful Bootstrapped Startups

#12

Post by goblgobl »

vaksel wrote: post #5

half of them I never even heard of...just goes to show the lack of coverage for self funded companies

Is it a lack of coverage or just strategically staying under the radar?

I think the lopsided press coverage of VC-backed vs. bootstrapped makes sense when you think about the incentives: VCs are focused on liquidity events (acquisition, IPO), so their startups might aim to be in the tech press and divulge details about revenue, growth, etc in an effort to pump up their valuations.

If you run a profitable bootstrapped company and you are reaching your customers, why speak to the tech press and discuss your financials? It would attract competition and I can't think of any upside.

Re: Highly Successful Bootstrapped Startups

#14

Post by jswinghammer »

davidw wrote: post #10
diolpah wrote: post #8

Earlier quoted context omitted.

Those of us who are running profitable bootstrapped companies tend to put less effort into getting our name in the tech or business press. It is more important that we get our name into the minds of our customers, as our cash flow does not come from Sand Hill Road. So, this lack of coverage should come as no surprise.

That's something I've been wrestling with lately. LiberWriter has started to turn a profit, and I'm wondering if I should copy Balsamiq's transparency / blog posts about early success. In some ways I'd like to, because publicity should help a bit in any case, but getting on HN really isn't going to get us any new customers.

I would say don't do it. I'm in a similar position (profitable company with an interesting back-story) and it seems like a bad idea to start giving out your personal financial details to the world.

Re: Highly Successful Bootstrapped Startups

#15

Post by antr »

Clicky is a great company with a great product, I've been using the paid version for some time now, and I can only say that they fit my company's needs better than other real-time analytics start-ups. Really happy that bootstrapped start-ups are as competitive and innovative as those which use VC financing.

Re: Highly Successful Bootstrapped Startups

#18

Post by diolpah »

goblgobl wrote: post #12
vaksel wrote: post #5

half of them I never even heard of...just goes to show the lack of coverage for self funded companies

Is it a lack of coverage or just strategically staying under the radar? I think the lopsided press coverage of VC-backed vs. bootstrapped makes sense when you think about the incentives: VCs are focused on liquidity events (acquisition, IPO), so their startups might aim to be in the tech press and divulge details about revenue, growth, etc in an effort to pump up their valuations. If you run a profitable bootstrapped…

"If you run a profitable bootstrapped company and you are reaching your customers, why speak to the tech press and discuss your financials? It would attract competition and I can't think of any upside."

I don't know about disclosing financial details, but the answer to the rest of your question is ego. Many people succumb easily to the desire for social recognition, even at the cost of strategic advantage.

Speaking from personal experience, it is sometimes difficult building a solid business that goes completely unrecognized outside of your own customers. It's a normal and accepted part of doing a boring business, but I can at least understand those who allocate resources to the pursuit of a little bit of ego gratification.

Re: Highly Successful Bootstrapped Startups

#19

Post by holdenc »

DanielBMarkham wrote: post #13

Bootstrapped, solo founder, and older-person-founder startups are very rarely mentioned in the press. Strangely enough, some stats show these startups are also the most prevalent. Thanks Rob!

Also, not especially popular in the press are non-exciting start-ups that are none-the-less profitable. There are many mom-and-pop web hosting companies and online stores for niche products doing just fine. But alas, this doesn't seem to be news.
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