In a World of Insane Valuations and Mega-Fundraising, Does Bootstrapping Still Matter?
- On February 24, 2022
- By GrowthInvest Marketing
Though venture capital-fueled unicorn companies make great headlines, there are key advantages for startups that go without external seed money.
With an eye-popping number of tech startups turning to VCs to fund their growth and an increasing flock of investors pouring limitless sums into startups, this might seem like the “right” way to build a business. Entrepreneurs, of course, commonly turn to venture capital funding from the get-go, convinced that it’s the only way to get off the ground quickly.
Bootstrapping, meanwhile, has suffered from somewhat of a stigma: There is a pervading thought that if a fledgling startup is profitable too soon (before getting an injection of venture capital funding), then it isn’t pushing itself enough. “Why didn’t they board the VC train and go farther and faster than they could have done with their own limited funds?” might be the resulting question.
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