There are pros and cons to both , says Ross Childecott of Kinde who raised +10m on the back of an envelope !
Neither path is better. You just need to figure out which is best for you - it comes down to what makes most sense of your mission, vision, values and goals!
High-growth company that dominates a market
Vs
Stable, profitable business that can run for decades.
Fundraising PROS:
• You can scale rapidly and capture market share that might otherwise be impossible
• You get access to networks, expertise, and credibility beyond your immediate circle
• It inevitably lights a firecracker under your *ss – accountability can be a powerful motivator
Bootstrapping PROS
• You maintain complete control and ownership of your vision
• You can build at your own pace and on your own terms (although scarcity in this case becomes the motivator for urgency)
• You can optimize for sustainable profitability rather than hypergrowth
Fundraising CONS:
• You're on a hamster wheel of fundraising, always chasing the next round
• You'll be perpetually "ahead of your skis," often running at an aggressive burn rate
• The business is no longer just yours – you've got investors with expectations
Bootstrapping CONS:
• Growth will likely be slower and more constrained by resources
• You're limited to businesses with manageable upfront costs
• The burden of success falls entirely on your shoulders
In short, if your goal is to build a high-growth company that dominates a market, VC might be the right tool. But if you want to build a stable, profitable business that you can run for decades, bootstrapping might be the right choice.
The most important thing is to choose deliberately. Understand that you're not just deciding how to fund your business, you're deciding what kind of business you're building.
Curious to hear from other founders: Which route did you choose and why?
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