Over the last decade and more, I’ve had the privilege of working with a large number of bootstrapped entrepreneurs. These include self-financed companies and also modestly capitalized startups that operate in a capital-efficient manner applying the principles of bootstrapping. [You can review my Bootstrapping course on LinkedIn to recap these.]
For our Seed Capital series of podcasts and blog interviews, I’ve interviewed hundreds of investors, especially micro-VCs and angels who are playing and important role in the early stage game.
You may have read my recent piece, Bootstrapping to Exit, where I highlighted the importance of facilitating capital-efficient startups and smaller exits, including with small chunks of investment.
In working through the current landscape of our industry, a few trends become evident:
My observation, having covered Bootstrapping for a dozen plus years, is that the industry doesn’t fully understand Bootstrapping.
No, Bootstrapping and Venture Capital are NOT necessarily mutually exclusive.
The savviest and most successful entrepreneurs have Bootstrapped First, Raised Money Later.
VCs LOVE to invest in bootstrapped startups that have validated and de-risked their ventures before institutional capital is invested.
There is nothing wrong with that approach, as long as entrepreneurs understand a few key principles:
I do not believe entrepreneurs should tell VCs to get lost.
I am going to write a weekly series on LinkedIn in which I will debunk many of the myths that exist on the topic.
Please subscribe to the series, and let us together advance the industry by merging the best of both worlds: Bootstrapping and Venture Capital.
This segment is a part in the series : Best of Bootstrapping