

Ask HN: Re: 37 Signals - List of successfully bootstrapped tech startups? - replicatorblog

I'm guessing the 8+ submissions of the 37 Signals/Twitter satire were killed due to fatigue. It makes sense, the argument surrounding the VC vs. bootstrap model in the context of the Mint buyout generated 300+ comments, often heated.<p>Instead of rehashing the same arguments can we look at this empirically?<p>lets create a list of successful (defined by exit or long term profitability) tech start ups that haven't taken VC. Then we can compare it to the portfolios from the top 5-10 VC's. It won't conclude anything, but at least we can argue facts instead of opinions.<p>I'll gladly put together a comparison site if we can generate enough names:<p>Successful tech start ups that haven't taken VC:<p>1. Craigslist.org<p>2. PlentyOfFish.com<p>3. MyBlogLog.com<p>4. ClubPenguin.com (angel)<p>5. Threadless.com (took on a small amount of expansion capital, but was profitable before hand)<p>Others?
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replicatorblog
Dell/Microsoft

([http://www.entrepreneur.com/magazine/entrepreneursstartupsma...](http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2002/october/55776.html))

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billclerico
does anyone know about microsoft's early funding? was it VC at all?

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bkbleikamp
Bill Gates had a trust fund because he had rich parents and grandparents. I
don't know if he used any of it to fund the company, but he didn't need VC to
buy groceries.

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callmeed
I'm wondering if someone could use the CrunchBase API to do such a
comparison–grouping companies by if they have any investments or not (assuming
the data is accurate, of course). <http://crunchbase.com/help/api>

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vyrotek
I've looked through these companies many times and never noticed the Bootstrap
category until now. Thought I would point it out -
<http://crunchbase.com/companies?q=bootstrapped>

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tjogin
I don't remember 37signals claiming you'll hit the jackpot with their proposed
model either. Their entire argument can be summed up as "forget the freaking
jackpot!"

Hoping to win the lottery is not a good way to make money. Instead, you should
just build a profitable business that you can live very comfortably from.
That's hard too, but it's a _lot_ more feasible than winning the lottery.

And by winning the lottery, I mean getting an exit of a ridiculous amount of
money, whether you were VC funded or not.

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callmeed
iStockPhoto

Acquired for $50MM by Getty Images. Projected revenue of $200MM this year.

No VC funding that I'm aware of.

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pclark
SAS Institute is the worlds largest privately owned software company. $3Bn
revenue last year.

There are probably literally dozens with revenue in the tens of millions of
dollars though. All the ones you listed are B2C, there'll be tons of very
successful B2B service providers.

Two local [to me, Cambridge UK] ones spring to mind: Jagex and Red Gate
Software both employee 150+...

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replicatorblog
For sure, thanks for the names. I don't doubt that there are lots of great mid
sized companies with large teams and revenue streams. I just get frustrated
when 37S talks up their process and doesn't mention others that are doing
likewise. I wouldn't be surprised if the bootstrapped companies were better
deals overall for the founders, you just don't hear about them nearly as much
as the vc backed ones.

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jaxn
With a VC you get a rolodex, which includes press contacts. Maybe there is
something to that whole "you hear more about VC backed companies" thing.

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christonog
Though probably not a start-up anymore, I don't think Zoho has taken any VC
money.

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replicatorblog
Great call, I forgot about them. You are right, they just mentioned how they
had no investors as it related to Zimbra's unpredictable future.

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replicatorblog
IIRC Kerpoof was acquired by Disney pre-funding
(<http://www.crunchbase.com/company/kerpoof>)

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pclark
its probably backwards to look for exits in private companies. Usually the
founders are 110% committed to building a long term company, and strive to
ensure they own the majority of the company so they aren't told what to do.

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pclark
none get large without VC.

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pjhyett
What's your definition of large?

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replicatorblog
Lets say over 200 people or $25MM in revenue as a first filter. Seems like a
relatively low barrier. A more conventional definition might be 1,000 people
or $100,000,000.

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borism
none of whom?

clearly there are some

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borism
"I'm guessing the 8+ submissions of the 37 Signals/Twitter satire were killed
due to fatigue."

interesting. I guess VCs don't like it when they're not needed?

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replicatorblog
Borism,

I was thinking more the moderators were tired of running through flamey
threads that amounted to "VC is the only way to build a REAL company" "Nah
man, VC's suck! Bootstrap 4 eva!"

