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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?

#81

Post by mezod »

Hi, I'm exactly in the same situation, bootstrapped saas (that I care a lot about!) at $15k mrr and getting vc offers. I'm 100% on prioritizing lifestyle and bootstrapping it all the way. Follow your gut, it's what's taken you this far.

I was recently recommended by more advanced bootstrappers to try to form a small closed mastermind (group of people with the same goals/values/stage in business). I suck at socializing but if you think it can help both of us to be in touch feel free to answer :)

Let's keep shipping!

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

#82

Post by marcus_holmes »

gkanai wrote: 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…

or the fourth option of having your business taken away from you because of politics and watch some VC-approved idiot destroy it.

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

#83

Post by newaccount74 »

I make a bit less than you, and have also been approached by investors.

I'm not sure what an investor would bring to the table. I guess they would tell me to hire people, tell me to raise prices, tell me to do more marketing, etc. I doubt they would pay me substantially more than I make now without substantially increasing the amount of work I have to do.

I don't really want to do any of that. I've tried hiring people, and didn't like the responsibility. I realised I prefer working on my own. I make enough money to support my family, and I prefer having the free time to read HN instead of hustling to get more people to buy my app.

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

#84

Post by kennxfl »

buf wrote: 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…

>2. Do I actually want to raise capital or do I want to work at my own pace?

Haven't VC-backed companies crushed small developers in niche markets who refused to scale? In most instances

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

#85

Post by _448 »

Don't say "No". Just tell the interested parties that you are not looking for funding or M&A at this time. At present you are concentrating on building according to the roadmap you already have. Once you are in need of money for further growth, you will certainly give them a call. You will be keeping then in your contact list.

That should help you keep the channel open for future.

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

#86

Post by propter_hoc »

serial_dev wrote: post #33
spaceman_2020 wrote: post #20

I 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

Why do you recommend to bring the person in as a co-founder? I'm not sure if I was OP (a person enjoying solving customer problems without the pressure of going global scale), I'd like to give up so much power to someone I barely know. Would you recommend against bringing in the business person as an employee, or as a contractor? A CEO for hire? Or maybe someone who can help with all kinds of operational stuff? It se…

Second this, GP's advice is terrible. The business is founded and making really decent money. The "co-founder" ship has sailed. Hire an employee and pay them a salary and maybe kick them some options if you want them to have skin in the game - max 5% if you REALLY like them. Or hire a personal coach and pay them a retainer and do the same.

Insulting and absurd notion to think that a company isn't past the "founding" stage because OP hasn't taken VC.

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

#87

Post by teh_klev »

spaceman_2020 wrote: post #78
teh_klev wrote: post #62

Earlier quoted context omitted.

> 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 Why does this need to be a co-founder? You can hire people as employees to do the daily "business" grunt work.

You want someone with skin in the game. A partner also helps in bouncing off ideas, figuring out a grander strategy, and in general, being support you can rely on. Unless OP wants a quick exit, this is a decade long journey. Having friends and partners along the way helps.

> You want someone with skin in the game

Isn't a salary enough? As soon as you start involving "skin in the game" players then you're starting to cede control of your company. Run with an employee doing these tasks. I really don't get this mentality that a regular salaried member of staff can't, as part of their role and responsibility, work on strategy etc.

Maybe a couple of years down the line you might want to open up space for a co-director for a share in your company. But loads of small companies get on just fine without bleeding their ownership and control away to others.

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

#88

Post by junofan »

mezod wrote: post #81

Hi, I'm exactly in the same situation, bootstrapped saas (that I care a lot about!) at $15k mrr and getting vc offers. I'm 100% on prioritizing lifestyle and bootstrapping it all the way. Follow your gut, it's what's taken you this far. I was recently recommended by more advanced bootstrappers to try to form a small closed mastermind (group of people with the same goals/values/stage in business). I suck at socializin…

You’re getting unsolicited term sheets?

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

#89

Post by caseyf »

cm277 wrote: post #71

I've done both. Bootstrapped a business to >$10m and (now) running a VC-backed firm. The models are different because the markets the two companies operate in are different. I see VC money as getting steroids in a competitive sport (not speaking from experience on that one...): it will save time, it will probably affect your health, but if you are indeed competing in sport, and other competitors are doing it, you don…

> 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

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

#90

Post by aembleton »

12tvende wrote: post #74

Sorry for the dumb question, maybe this is just my english skills falling short: What does MMR mean? And to answer the question even though I have no experience being in a such a position nor running a business: I would probably keep running it myself as long as it gives meaning and is driven by your passion

Monthly Monthly Revenue. https://medium.com/@appflame2/mmr-monthly-recurring-revenue-...
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