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

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

#1
I run a small, bootstrapped SaaS making 15K MRR or so. It's the most money I've ever made, in a domain I'm passionate about. I don't come from means or have a prestigious background; I feel like much of my success has just been luck and grit. I'm not a great business person, but I care deeply about product, development, and my customers.

I am sometimes contacted by eager megacorp M&A departments and VC funds, but... Is it weird that I don't want to do any of that?

I'm enjoying the lifestyle of "solve client's problem, client pays me money, innovate, iterate". It probably won't last forever, but it's simple and it feels authentic. The megacorps and VCs I've spoken to want to turn up the heat and take the business to the moon, planet-scale growth or self-destruct---I don't think that's what I want. I'm sure my potential acquirers or VC-funded competitors will build it with or without me eventually but... I don't think I give a shit.

Am I being a weirdo? Some of my more "Silicon Valley"-type friends think I'm nuts.

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

#3
If you're happy, then live your life, man. We're all weirdos in our own ways.

The advantage of VC etc. is that if you have objectives for your company that you can accelerate with money, then you can do that faster than if you do it solo. That's useful because the only really irreplaceable resource on the personal scale is time.

But if you feel fulfilled doing your thing then maybe live it. There's hundreds of businesses of this size that can live forever because the TAM isn't high enough. And anyone who attempts venture scale in those will just fail. So this could be a very rational decision.

Enjoy and congrats!

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

#5
I would say trust your instincts on this one. VC absolutely comes with strings attached, and those strings can easily lead to worse outcomes for both you and your customers.

Of course VC has its place, and some things are better off targeting massive scale from the beginning, but it does preclude a lot of good ideas just based on the economics. Given the scalability of software, running leaner can enable a wider variety of products that deserve a place in the world. If you want to split the difference with some funding you could consider https://tinyseed.com/.

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

#6
As you say it, it might not last forever. VC startup is a more recognized "unit of business". Equally, VC objectives may be different than yours and they may spoil the dream for you.

It's a choice of being your own, maybe small rocket, and strapping yourself to another, bigger rocket, which is going roughly up, but maybe not where you want it to. Either can explode, but in different ways...

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

#7
Success to you is for you to define. Don't fall into the trap of VC funding because its all you read on HN or Techcrunch. What you have built is your baby so don't let anyone else tell you what you should be doing. It sounds like you have so much meaning and purpose in the company you have. If (and it sounds like) you don't want the vc money, then that is the right decision for you.

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

#9
These don't sound like serious inquiries. Have you been approached by a partner at a VC firm or a executive at the Megacorp? This sounds more like due diligence against other investments they are considering by having low level folks reach out to see what they can uncover.

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

#10
Building a bootstrapped business (i.e. NOT taking venture capital) is a rare skill. I would keep on building without outside capital if you can continue to build growth. If you hit a ceiling (without growth) then you may want to consider looking for/accepting outside capital.

As soon as you accept VC funding, there are basically 3 outcomes for your company. Getting acquired, going public (if that's an option where you are) or going bankrupt.

If you can keep growing without VC funding, I'd keep doing that.

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