“Existence is a great simplicity. There is Black and there is White.
There’s so much more Black. Are we losing?
No. Once there was only black. We are winning. All is right.”
For some fundraising is the black and bootstrapping the white; for others the opposite.
Below are 6 reasons why I believe a startup should stay self funded as long as possible.
6. You can proactively find your own mentors.
Good mentors don’t need to be imposed. You should find your own mentor.
5. Fundraising can be a dangerous waste of time.
Every minute you spend talking to investors is a minute that could be used to improve your product. Many startups lose focus on their product and customers, spending too time with meeting investors.
4. You became an entrepreneur to be your own boss.
Exchanging equity for cash is not a one-time transaction. Funded startups have tokeep investors in the loop about progress and constantly justify any business decision.
3. You don’t need an accelerator to get a cash injection of 30000 usd for 20% equity.
Good accelerators are less than you imagine. In my opinion many accelerators are just startups (like yours) whose customer is the startup founder.
2. Bootstrapping forces you to learn what really matters.
You are running a business because you love the problems you are facing and the solutions you are building. There is no time to experiment with things that don’t deliver increases in customer value.
1. The best conditions to raise funding are when you don’t need it.
You can raise funding in the future. If investors want to invest in your bootstrapped startup when you are profitable, you can negotiate your terms, walking away from deals that you don’t like or that don’t work for you.