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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?

#121
post #91
post #89

Earlier quoted context omitted.

> But, a bootstrapped firm also has to exit at some point too: you'll either have to sell it (maybe at a loss), shut it down, or pass it down (death comes for us all). Are you willing to do any of these? highlighting this because I think it's important to think about where you are headed and what your plan is

Let me rephrase this pithy remark in econ terms: a company by definition builds value, hopefully a lot. You as the founder at some point has to extract the value one way or the other (immediately by exiting, over a longer period by divesting/retiring/passing it on) or lose it (shut it down or watch the company wither). There are no other exits. You cannot take the money with you. So the question to the OP is, how muc…

I’m not sure this answer is as true as you imagine. You extract money via a sale to then invest it and create a revenue stream. Which you potentially already have in the original business. It’s just it was invested in your business v someone else’s.

The question of whether to sell it is a function of how much money you need in a lump sum, how precarious or stable your business is and how much cash it’s throwing off. And of course of diversification.

It’s not defacto true that you need to sell it to realise its value though

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

#122
VC money is for the situation "we could grow so much by tacking this one opportunity that a bunch of money would help solve" or if you need the clout of having it, or the introductions or advice those investors would give.

If you want to grow slowly and focus on solving problems and are already doing well and at a pace you are ok with, then they don't have what you need.

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