You do have a real business already: understanding potential customer problems, solving it and charging for it. If you want to grow your activity, VCs are one way that has been pounded for the last decade or so, but not the only one! You could start by looking for an associate, you could employ someone to help with tasks you’re not comfortable with, etc. Be the entrepreneur you want to be, not what the crowd tells you to be!
Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
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Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#12Congratulations on finding success and satisfaction in your work. I hope to one day find the same. Personally, I think you should keep doing what you’re doing. If you accept VC money you are now beholden to your shareholders and are no longer in control of your business. The degree of autonomy you have, the quality of your product, and the satisfaction you derive from your work will all surely suffer as a result. It’s a deal with the devil and frankly, were I running a business, I would stay away.
PS. These are merely the opinions of someone with no experience operating a business.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#13I joined a bootstrapped SaaS several years ago in a niche domain. They were making 10x that again in MRR, growing rapidly and still 100%-owned between the 2 founders. VC's knocked on their door every week but they had their own vision for growth.
Don't be afraid to walk your own path.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#14Personally, I would always pick bootstrap over VCs after past experiences when I can (there are businesses that simply cannot be started without a lot of cash). But I don't want to be a billionaire; I want to live comfortably and doing what I like; also, like you say, I don't want the 'go big or go home' attitude; you can get VC money and be gone in 6 months even though bootstrapped you would've ran the same business, but slower, for a decade+.
We had VCs in the past and it can take out the fun immediately depending on your taste. They (VCs) simply demand results, fast, so you change from someone who does what they like and believe in, to someone who has to focus on numbers, growth, staffing and presentations (always be raising once you're in!). Even for me as CTO, the VCs we worked with demanded me to be more of a MBA CTO dan a tech CTO; that's not me (I ran companies as ceo/cfo and know the theory well enough; I just find it a waste of life for me personally while there are other people who love that, so why would I?), so I had some words with them over that every meeting.
In short; if you don't need to and you don't want this pressure cooker growth, I wouldn't give away % for money; only for people who really benefit your company and are willing to grow slower with you. Definitely not weird at all.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#15Congrats! It's a great position to be in! I've been running a bootstrapped business for 6 years.
You're not nuts at all, it all comes down to what you want. I personally want to start a VC backed business next year. They're both different types of businesses, where you'll learn different skills and live life in different ways.
If you don't want to do any of that, then you've just answered your own question! Enjoy where you're at and don't worry about comparing yourself to what others think.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#16Building 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 yo…
But if you get far enough, you can also contemplate a bank loan or loaning from a private person. I would not want to give away % if there is healthy income in the company and no drive to go nuclear (just healthy growth, which isn't 100%+/year as VC demand).
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#17You might consider taking on some debt, perhaps in the form of a convertible note, given what the economy is doing. That gives you a cushion for N years of degraded revenue. Depending on the terms, the strings might be minimal.
If you sell equity, the VC's will expect a huge multiple return on investment over ~5 years.
If your company could get to $100m-1b a quarter with the VC money (but not without), then take the cash. If projected revenues after you saturate the market are much lower than that, then the VCs will probably want you to build the company so it can be easily acquired for a quick buck. It sounds like you don't want that.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#18IMHO, keep doing what you're doing! Not much better than being beholden to no one but yourself. I don't think it's weird at all to want to keep that going.
Personally, I'm pretty inclined to shy away from VC unless it's unavoidable for the domain the company is in (e.g. hardware companies, which tend to require an unbelievable amount of capital outlay just to survive development + manufacturing).
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#19You have drawn enough attention for VC cold calls which means your idea is attractive. Your VC funded competitors will grow faster than you unless they botch things. If that is acceptable, continue present course.
Re: Ask HN: Is it okay to just bootstrap it, even when VCs are knocking?
#20I can tell from your post that you will absolutely hate ceding control to a VC
I would recommend finding a co-founder who has similar ideals but can handle the parts you don’t like doing, and has business experience. You’ll get much further without losing real control