The most common question that I am asked about our startup is are we actively seeking investment and my answer so far has been no.
It seems that startups are somehow always related to investments and it is my strong belief that this is unrightfully so. There is nothing wrong with bootstrapped startups or startups whose purpose is not to have the big exit.
I am the strong believer in bootstrapped businesses. I think one should never start a business that requires outside investment to even get a chance of succeeding. Simply the business model should be provable with whatever funds you have on hand, before attempting to scale it up. Investment at a later stage (when the business model is proven) does make sense though for example for acquisitions or attracting better human resources.
TechCrunch is to definitely to blame for only writing about startups that received an investment or made large exits. You will rarely see any bootstrapped startup featured on TC.
This creates an atmosphere where startups are only measured by the amount of $$$ they produce or attract. It is not uncommon that a photo sharing app receives weeks of exposure on TC (!)
I said what I mean about photo sharing apps in this post.
I want to mention, give huge props and congratulate Elon Musk, definitely the most inspiring entrepreneur in the world at this moment.
Suggested reading:
- What makes a startup successful
- Simple but possibly lucrative WordPress related business idea
- 7 People to Follow on Twitter if You are a Startup Founder
Posted in: Debate, Startups
2 Comments
Maybe,You've failed once at investing that's why you say that Bootstrap business is far better. Maybe You seek guidance from a guru like Ed Butowsky.
Mark Cuban talks about this specifically in his Ebook. It was a great point and it is something I see all the time. Also, the people that will give you the money are usually not the best people for the company. If at all possible bootstrap and make it happen without relying on outside funding.