Founder's Diary

Bootstrapped company vs funded company

By 24th October 2016 No Comments
Bootstrapped-company-vs-funded-company
There is a big difference between bootstrapped company and funded company. From day one, bootstrapped company has to make money.
Bootstrapped company: from the day one it’s clear If we are not going to make money, we are going to out from the business. Funded company: from day one they have to spend money. They got a bunch of the money in the bank and they have to spend it.
Here is a fundamental difference between both mindset, one has to make money, and the one has to spend money.I think, making money is something you can practice, and you can be excellent at over time but if you used to spending it and not good at making it. This is what happen with venture-backed companies, they are really good at spending money when the money runs out they don’t know how to make it, now bootstrapped company eventually good at making money. That’s the right approach to learning by practicing it.

People said that they couldn’t buy time, in my opinion, you can buy time if you bootstrapped company,  are paying you bills, can do what you want. When you are taking money from VC you are renting time when they decide you are up; you are up. That’s my opinion try with your money, try hard before you get money from VC.
No votes yet.
Please wait...