
Why I’m switching from being a bootstrapper to a funded startup - Tawheed
http://www.tawheedkader.com/2011/02/why-im-switching-from-being-a-bootstrapper-to-being-funded/
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joelg87
Sounds like you're certainly more keen on the startup than the consulting. I'm
in a similar situation, where I do a little contract web development as well
as building up my bootstrapped revenue-generating startup on the side. My plan
is to stay bootstrapped, but build up the revenues to a point where I can
focus fully on the startup. It will take a little longer than if I had angel
investment, but I believe it is totally worth it, and I have already managed
to drop my contract work a little.

What I'm intrigued about is whether you believe you can't build up the startup
to ramen-profitability and drop the consulting work without getting angel
investment? If you can, then why would you not hold off the investment until
that point?

Another related thing I'm wondering is whether you agree with the wisdom of
"get investment when you don't need it" and "leave it as late as possible"? It
seems like you could drive up the valuation if you waited.

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phamilton
I get what you mean when you say you are reluctant to get funding for unsure
ideas until they are tested. I'm afraid, even with someone else's money, to
bark up the wrong tree.

My startup is going through an incubator now, and one of the biggest things
I've seen is that fear of failure motivating rather than limiting. I'm more
willing to pivot and change because even though we are still calling the
shots, we've got to look our angels in the eye and tell them it's a good idea.

Bootstrapping is great if you can do it. So is building a startup while
working a full time job. But like quitting the daytime job, receiving funding
helps to kick you into action.

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maxklein
I think you'll find it a bit difficult if you don't explain where the _growth_
is going to come from. It's easy to make a trickle of money, but will it grow
enough to make an investor his money back and more?

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paraschopra
I think he will explain that in private PDF document he is going to send to
angels.

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robfitz
I think this makes sense for you and the product. Someone needs to compete
with UserCycle ;)

Good luck with the round.

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jasonlynes
are you using any other means besides the blog to drum up investment? i'd be
interested to hear what and if/when you succeed..

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Tawheed
I started about two weeks ago getting intros to angels from within my network.
I connected with a couple of angels over the past week and perfected my pitch.
Over this weekend, I submitted to AngelList and wrote the blog entry. So, to
answer your question, it is a variety of things, and I've found it is a lot
about relationships and connecting through people you know to the people you
want to know but do not know.

