Why do I bootstrap? And should you too?
Bootstrapping means building a startup without relying on external funding, using personal savings, revenue, or small initial investments to grow. Unlike venture-backed startups, bootstrapped companies focus on profitability and sustainability from day one.
Sounds like a normal way to build a business, right?
But most founders & investors are still shocked when I tell them I don’t focus on raising funds and prefer bootstrapping. Here’s why.
VC Funding vs. Bootstrapped startups
Only about 1% of startups secure venture capital funding.
The vast majority either bootstrap or rely on alternative financing methods (loan, friends & family funding). VC-backed companies aim for hypergrowth and go all-in, bootstrapped businesses prioritize sustainable, long-term success. Question is - what do you really prefer?
What second-time founders say
Many founders who have gone through the VC funding process once prefer bootstrapping their second startup. Why?
VC horror stories: Loss of control, misaligned priorities, forced pivots, messy cap tables and crazy dilution. 90% of founders I know would not raise from VCs again.
Bigger exits for founders: Without VCs, more of the exit value goes to the founding team. It’s you who spent years growing the business, and you should be rewarded for that.
More freedom: No pressure to chase unrealistic growth just to hit the next funding milestone. Build on your own terms.
SaaS-friendly: Most SaaS businesses don’t require massive capital and can scale profitably. If you think you need VC funding to even launch your SaaS MVP, you’re wrong.
Why I choose to bootstrap
I believe in building camels, not unicorns - companies that thrive in any market. Seeing solid startups collapse in 2022/23 due to inflated valuations and overhiring made me rethink how I want to grow my own company.
Happy customers = Investors: Revenue from paying users funds our growth.
Operational efficiency: Both atlaseek and qasima are lean, with minimal overhead and heavy automation, run in 2 people.
Smaller teams = more focus: Large teams lead to inefficiency and complexity. We don’t have time to build unnecessary features.
Keep the doors open: I’ve never approached an investor myself, but at least two reach out to me each month.
I’m open to talking but clear about how I want to grow - most conversations end there, and that’s fine. Some investors, especially angels and smaller VCs, like our approach and are willing to support us when needed, which is good to know.
Successful bootstrapped companies
Some of the biggest names in tech started with little or no external funding:
Mailchimp: Grew to a $12B acquisition with zero VC funding.
Basecamp: Scaled sustainably while maintaining full control.
GitHub: Bootstrapped until raising a small seed round, later acquired for $7.5B.
The go-to approach seems to be either raise a small seed round, chase profitability and not raise again or be fully bootstrapped. By the way, this is also how YC Partners recommend building startups.
Is bootstrapping right for you?
If you’re considering bootstrapping, ask yourself:
Do you have at least one year of cash runway?
Is your idea capital-efficient (most SaaS businesses)?
Can you validate early before investing too much?
Do you have a technical co-founder to minimize costs?
Bootstrapping isn’t for everyone, but if you value control, efficiency, and sustainable growth, it’s often the best path.
Chase customers, growth, and profitability, and you’ll never need to chase investors (they will chase you).
See you soon!
Kristina
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