

Why Bootstrapping Is Overrated - jiyannwei
http://www.forbes.com/sites/groupthink/2013/11/08/why-bootstrapping-is-overrated/

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mindcrime
Hmmm... is it just me, or did anybody else read that and feel like nothing
there really supported an assertion that "bootstrapping is overrated"?

Maybe it's just my own biases leaking through, as we are currently following a
bootstrapped approach with Fogbeam Labs. And I most emphatically do _not_
agree with (apparent) implication mentioned in the article, that seems to
state "if you don't raise cash you are only building a lifestyle business".

IMO, it all comes down to timing and necessity. We will raise money if and
when we need to. Our identity isn't tied in being "a bootstrapped startup" for
perpetuity. It's just a strategic decision that makes sense right now. And if
we reach a point where it's apparent that raising money is required, we'll do
it. But if we can achieve our goals without raising outside money, then why
would we?

The interesting thing, to my mind, is this: If you start off with a
bootstrapped approach, you can go raise (or at least try to raise) anytime.
But once you raise, there's no going back. And the thing is, it's not "go big
or go home", it's "go big _on our schedule_ or go home". Big difference, IMO.

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jiyannwei
I agree with you 100%. My initial goal was to represent a perspective on the
relative pros/cons to both and point out that for most companies, there is a
time to consider either approach. Regardless of the ultimate direction,
bootstrapping teaches you invaluable lessons that will make you a stronger
entrepreneur if/when you decide to raise. Our personal experience was that
after bootstrapping for a while, we encountered several obstacles based on our
product vision, skill set and market that raising helped us overcome. I
wouldn't suggest that this is the case for everyone: different calibrations of
founders/products/verticals might have very different equations for success.

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orasis
Yes Virginia, starting a company is hard. At least you focused more of your
effort on product and customers than raising capital.

