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100% User-Supported

stephango.com

51–60 of 66 posts

Re: 100% User-Supported

#51
Congratulations on building something great!

It is immensely satisfying to build something that you believe in and succeed in selling it. I founded my company in 2019 and my experiencing and motivations in bootstrapping mirror yours.

We are in year 4 (commercials) and 6 (product development) at Factor House[1].

We build enterprise tooling for streaming systems (Apache Kafka and Apache Flink mostly). Selling software to enterprise customers is different from B2C as the sales cycles can be endless and most likely your cashflow might be more lumpy, but at the end of the day it's a very powerful thing to be profitable and independent.

As @yevpats points out sometimes the bootstrapping story does miss some details, in our case we invested roughly $500k to get through the pre-commercial period, to achieve that we sold our house (my wife is also my co-founder). Not everyone can, or is mad enough, to commit resources at that early stage. To be honest we were quite mad.

Prior to starting product development with Factor House we ran a consultancy that delivered systems for enterprise customers based on Kafka, Storm, Cassandra, etc - so we had plenty of experience. We also had consultancy customers who were eager to use the pre-commercial versions of our product and provide feedback.

I also run a meetup[2] in my hometown that specialises in programming solutions with distributed systems.

Last year we took a small amount of funding from Lighter Capital (non-dilutive, fairly simple loan terms) to unlock some growth.

Bootstrapping is hard, but my interactions with VC left me with the impression that it's a low-information lottery for the benefit of those who already have capital.

It seemed clear that if we took funding we would rapidly lose control of our vision and we don't need to 100x our business to achieve our goals. I would rather focus on delivery for our users and avoid adopting manic ideas to pay off 99 failed lottery tickets.

[1] https://factorhouse.io

[2] https://www.meetup.com/melbourne-distributed/

Re: 100% User-Supported

#52

I'd like to see some counterpoints. Which startups have been around for 15 years, took a bunch of VC money, but are as good to their users now as they've ever been? It's got to be a short list.

duolingo? Maybe airbnb? That's all I've got.

Duolingo has removed a lot of user generated content that helped people learning. I've heard from many that it is overall worse than it used to be.

Re: 100% User-Supported

#54
post #46

I am 2.5y into a bootstrap business (proxy alternative to burp suite). We are not nearly as successful as obsidian, but we managed to hit 30k$ ARR. Honestly if I didnt have a contract on the side with high pay and low hours I would not be able to do it. Even with that if I compare what I would make as a full time dev I am not sure I will ever break even. I used to judge/lament VC backed software, now I understand. Wi…

> proxy alternative to burp suite

We're listening. Shoot your shot.

Re: 100% User-Supported

#55

"VCware" is a nice succinct term to use, I hope it catches on in the wider tech/power user scene and the first comment about any launch is whether it's "vcware". Of course it will be a bit awkward here on HN due to somewhat obvious reasons but hopefully elsewhere the term becomes used. I think one thing that royally pisses me off even more then an initial VC backed launch is a seemingly stable, premium product going…

[deleted]

Re: 100% User-Supported

#56

I'd like to see some counterpoints. Which startups have been around for 15 years, took a bunch of VC money, but are as good to their users now as they've ever been? It's got to be a short list.

I started Sauce Labs (Selenium SaaS for testing in the cloud) 16 years ago. Raised ~$150MM. Still going.

Re: 100% User-Supported

#57
There is not enough time in the day to do everything and I am building stuff that is very complex with my small team. We make some money but we all have side jobs while there is enough work to do to fill 20 people’s days. So we decided to go raise now as this is not sustainable; without this work the product cannot grow and we don’t have time to be clowns on social media etc.

Re: 100% User-Supported

#58

"VCware" is a nice succinct term to use, I hope it catches on in the wider tech/power user scene and the first comment about any launch is whether it's "vcware". Of course it will be a bit awkward here on HN due to somewhat obvious reasons but hopefully elsewhere the term becomes used. I think one thing that royally pisses me off even more then an initial VC backed launch is a seemingly stable, premium product going…

I didn't realise Bitwarden had taken VC. That's sad. I'm not going to transition away immediately, but I'm definitely going to keep an eye on it.

Re: 100% User-Supported

#59

"VCware" is a nice succinct term to use, I hope it catches on in the wider tech/power user scene and the first comment about any launch is whether it's "vcware". Of course it will be a bit awkward here on HN due to somewhat obvious reasons but hopefully elsewhere the term becomes used. I think one thing that royally pisses me off even more then an initial VC backed launch is a seemingly stable, premium product going…

Github was a 80 person bootstrapped company.

Re: 100% User-Supported

#60
post #46

I am 2.5y into a bootstrap business (proxy alternative to burp suite). We are not nearly as successful as obsidian, but we managed to hit 30k$ ARR. Honestly if I didnt have a contract on the side with high pay and low hours I would not be able to do it. Even with that if I compare what I would make as a full time dev I am not sure I will ever break even. I used to judge/lament VC backed software, now I understand. Wi…

> proxy alternative to burp suite We're listening. Shoot your shot.

It is called Caido
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