Startup Bhutan: Why the Bootstrap-First Philosophy Is Necessary for Acceleration

The Accelerator Conundrum is a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

Bhutan is one of the most distinctive nations on earth. Guided by the Gross National Happiness (GNH) index, the country’s policies aim to balance economic development with cultural preservation and environmental sustainability. With a population of fewer than 800,000 people and a relatively small economy, Bhutan’s entrepreneurial ecosystem faces unique challenges and opportunities.

The Silicon Valley model of blitzscaling and venture capital is ill-suited for a country like Bhutan. In developed markets, investors fund rapid, aggressive growth with the goal of building unicorns. In Bhutan, this approach is neither realistic nor sustainable. The domestic market is too small to support billion-dollar valuations, and the infrastructure for venture capital is still nascent.

Instead, Bhutan needs to focus on bootstrapped, revenue-driven ventures — startups that grow steadily, sustainably, and profitably without becoming overly dependent on external funding.

Why Capital-First Models Don’t Work in Bhutan

1. Tiny Market Size
   Bhutan’s total population is smaller than most global cities. Even a highly successful startup that serves the entire country will generate limited revenue unless it expands internationally, which comes with logistical, cultural, and regulatory hurdles.
2. Limited Access to Venture Capital
   Bhutan does not have a deep pool of investors actively scouting for early-stage opportunities. Platforms like Jabchor 2.0 are making strides to connect entrepreneurs with angel investors, but there are no large-scale venture capital firms operating in Bhutan.
3. High Risk Profile for Founders
   Many Bhutanese founders come from families reliant on stable incomes. The extreme risk profile of blitzscaling, where failure is common and catastrophic, is unrealistic for most local entrepreneurs.

Bootstrap-First for Bhutan

Bootstrapping is about building companies with discipline and customer-centricity. In this model:

• Customers fund growth, not investors.
• Profitability comes early, ensuring long-term sustainability.
• Founders retain control and equity, avoiding pressure to exit prematurely.
• Scaling happens organically, based on market demand rather than external growth mandates.

Bhutan’s sectors — eco-tourism, sustainable forestry, agriculture, handicrafts, and niche technology products — are perfect candidates for this approach.

Why 1Mby1M Fits Bhutan’s Needs

The 1Mby1M Virtual Accelerator is designed for founders in ecosystems like Bhutan. By offering continuous mentorship, structured curriculum, and a global network, 1Mby1M teaches founders how to bootstrap first, raise money later — if at all.

Our Digital AI Mentor extends this accessibility even further, providing 24/7 guidance to entrepreneurs across Bhutan, regardless of their location. Unlike most local programs that are urban-centric and cohort-based, 1Mby1M is always-on and completely virtual, eliminating barriers of geography and timing.

Mapping the Local Accelerator Landscape

Bhutan’s startup ecosystem is still young but showing signs of promise. The government, NGOs, and international organizations have launched several initiatives to nurture entrepreneurship, particularly among youth and rural communities. However, most programs are early-stage incubators rather than full-fledged accelerators.

Here are the key players in Bhutan’s startup scene:

1. Springboard Plus Programme (UNDP Bhutan)

A six-month seed acceleration initiative supported by the Ministry of Industry, Commerce and Employment (MoICE) and UNDP.

• Focus: Youth-led, socially driven enterprises
• Offerings: Mentorship, small seed funding, networking opportunities
• Goal: Help participants develop prototypes and prepare for early market entry

2. Jabchor 2.0

A platform connecting Bhutanese startups with angel investors and early-stage capital.

• Focus: Equity-based funding across diverse sectors like green tech, IT, manufacturing, and agriculture
• Role: Provides a structured pathway for entrepreneurs to secure investment — a significant gap in Bhutan’s ecosystem

3. Thimphu TechPark & Startup Weekend

The Bhutan Innovation and Technology Centre (BITC) under Thimphu TechPark organizes events like the National Startup Weekend, which returned recently after a four-year hiatus.

• Offerings: Hackathons, bootcamps, ideation workshops
• Strength: Building community and fostering early-stage ideas

4. Changzamtog Startup Centre

A physical incubation space for startups in Thimphu.

• Challenges:
  • Startups struggle with rent and operational costs.
  • Two-year incubation limit may not provide sufficient runway for sustainable growth.
  • Lack of post-incubation support.

5. Forest Ecopreneur Incubation Programme (Loden Foundation)

Focused on environmentally sustainable businesses, particularly those tied to Bhutan’s forests and natural resources.

• Duration: Four months
• Focus: Social entrepreneurship, environmental sustainability

6. International Collaborations

Partnerships with institutions like the IC² Institute (University of Texas) are bringing innovation-readiness training to Bhutanese entrepreneurs.

While these initiatives are valuable, they are fragmented, time-bound, and largely concentrated in Thimphu. Virtual, continuous acceleration — especially for rural entrepreneurs — is almost non-existent. This is where Bhutan’s ecosystem shows its biggest gaps.

In Part 2, we will analyze the pros and cons of these programs in detail.

One Million by One Million (1Mby1M) is the first global virtual accelerator in the world, founded in 2010 by Silicon Valley serial Entrepreneur Sramana Mitra. It offers a fully online entrepreneurship incubation, acceleration and education resource for solo entrepreneurs and bootstrapped founders working on tech and tech-enabled services ventures. 1Mby1M does not charge equity, offers an AI Mentor in 57 languages, and offers a distinct advantage over other accelerators including Y Combinator.