Bootstrapping vs Fundraising

Aj
3 replies
What do you prefer and why?

Replies

Mahdi Taghizadeh
I think there is no preference and it highly depends on the business model and the real potential of that as well as the financial situation of founders. Of course, bootstrapping with the capital equal to an expected investment is the best as it increases the potential for larger investments in the next rounds and founders keep all the equities; but talking about startups, most founders don't have the required capital to do this. I think a combination of both doesn't slow down the growth because of relying on the small amount of capital provided from bootstrapping and keeps the larger portion of equity (so the decision-making power) is ideal.
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Michelle Marcelline
Co-Founder at Typedream (YC W20)
What's ideal for me is raise a seed funding to get me started and never raise again (be profitable)
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David J. Kim
Co-Founder of Between
Depends on how far you want to take you business. Most big companies relied on external funding in the early days. In fact, some of them still rely on funding to stay afloat, like Uber!
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