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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?

#51
post #24

I'm a solo dev doing $700k yearly across two saas products. I'm also the founding engineer at Reforge (e.g. I've done the VC game from A16Z). There are two things I look at when raising VC. 1. What's the TAM of my product and will a capital injection get me there faster? 2. Do I actually want to raise capital or do I want to work at my own pace? The last couple of years (after Reforge), I've just been working at my o…

> healing from my last VC run

@rainbowtroutz pay attention to this line.

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

#52
I'm the kind of person who prefers a reasonable salary at a reasonable stress level. I wouldn't want to work super hard for a chance at becoming super rich, because I'll probably have a heart attack before payday.

VC money comes with the obligation to 3x it in 3 years. Unless you need it, stay away!

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

#53

Congratulations 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’…

I'd agree, although selling the business outright (or retaining a small percentage) and then moving on to something else would allow you to try and repeat the success (which admittedly you may never be able to), but without any financial concerns.

Apart from the financial part, whether that's interesting as an option depends what you enjoy more:

creating a business from scratch, or running and evolving a business.

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

#54
post #25
post #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 yo…

Good advice here. > If you hit a ceiling (without growth) then you may want to consider looking for/accepting outside capital. One other option at this point is to sell the whole business. For bootstrappers allergic to VC or lacking the drive/skill to scale further/faster, can be a nice outcome. Seems to be a growing number of firms specializing in small saas acquisitions too (Tiny Capital comes to mind - no affiliat…

A third option would be: just not grow.

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

#55
post #54
post #25

Earlier quoted context omitted.

Good advice here. > If you hit a ceiling (without growth) then you may want to consider looking for/accepting outside capital. One other option at this point is to sell the whole business. For bootstrappers allergic to VC or lacking the drive/skill to scale further/faster, can be a nice outcome. Seems to be a growing number of firms specializing in small saas acquisitions too (Tiny Capital comes to mind - no affiliat…

A third option would be: just not grow.

Exactly, why not build a solid product that serves a modest market and earns a steady revenue over a long term. You can focus on quality, features, innovation etc. and still run a sustainable business. Not everyone needs to grow all the times.

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

#56
I'm reminded of the fisherman story. Money is just a means to an end. Take some time, decide if you have a particular end in mind, and if you really need boatloads of money to achieve it. Otherwise, enjoy your freedom!

Fisherman story - https://bemorewithless.com/the-story-of-the-mexican-fisherma...

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

#57
When people you don't know come to you to force themselves into your business and push for a vision that is not yours, and you are wondering if you are weirdo for not wanting them to do so? I would say you are very normal.

Money is not everything and if the time come when you have a vision that requires capital and you know what you want to do with this extra cash, then you will know where to look, but don't feel bad for willing to be in charge of your business.

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

#58
> It probably won't last forever, but it's simple and it feels authentic.

(Inexperienced armchair take:) it's more likely to last 'forever' (which I take to mean 'to retirement'/'as long as you want it to'/etc.) than taking investment/being acquired. Sure that could lead to lasting 'forever' on a bigger scale (as a more stable bigger company, or a longer 'forever'), but at a much lower probability.

I don't think you're weird - I'd love to be in your shoes in this regard. Can't say for sure I'd have the stomach to turn down cash offers of course, but the VC route has never been a dream/had the appeal for me it obviously does to many. I think perhaps because I'm not so interested in 'having a successful company' for its own sake, I wouldn't want to have to 'pivot' for example, I'd rather build something I care about, and the business side would be just doing the best I could to support that; maybe that would be a large cash injection in exchange for equity, but you don't mention any massive expensive changes you want/need to make. (That sounds pretty stupid and obvious when I write it out, but it's definitely a lot more of a traditional approach than taken by most that would use the term 'startup', or really the vast majority of new software/genuine tech companies.)

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

#60
post #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 yo…

> Building a bootstrapped business (i.e. NOT taking venture capital) is a rare skill.

It is VC companies that are rare - the vast majority of businesses of any kind - and also internet businesses - are bootstrapped.

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